1、7T2se3r0Ot6kwoPa7T2se3r0Ot6kwoPaDistributed on:17/07/2025 15:58:04 GMTDistributed on:17/07/2025 15:58:04 GMT17 July 2025Deutsche BankResearch Rating Hold Europe France Media and Online Advertising&marketing Company Publicis Date Forecast Change Swimming against the tide,but watch for macro wavesComp

2、any-specific positives were offset by a mixed macro message;HoldPublicis delivered a strong Q2 2025 performance,exceeding expectations and prompting an upward revision to its FY 2025 organic growth guidance.These encouraging results stem from Publicis ability to win new clients,as well as increased

3、scope with existing ones.Nevertheless,the cautious tone on the macro environment,combined with the implications of client spending trends that might lead to some pullback,contribute to a degree of uncertainty in the outlook.As a result,while we nudge our organic growth forecasts higher to 5%from 4%i

4、n FY25,we lower our TP to EUR 94 from EUR 100.This reflects a more conservative valuation multiple and leads us to reaffirm our Hold.We acknowledge Publicis superior performance relative to its peers,but we remain mindful of its inherent exposure to the cyclical advertising sector,prompting us to se

5、e limited potential for incremental positive surprises at the current valuation.PUB trades on 11x P/E for 2025E,at a premium to the other three big ad agency groups trading between 6x and 9x.We would watch for signs of clients spend before potentially revisiting.The positives from the quarter were P

6、ublicis-specific trends.Publicis strong Q2 performance and upgraded FY25 guidance were underpinned by two key drivers.First,the robust new business pipeline,stemming from deals closed in the second half of 2024 and beginning of this year,which provide a solid foundation for net revenue throughout th