BofA Expects Publicis Groupe to Log 'Broadly In-line' Q3 Organic Sales Growth; Price Objective Up

07:36 AM EDT, 09/25/2026 (MT Newswires) -- BofA Global Research expects Publicis Groupe's (PUB.PA) organic sales growth in the third quarter to come in "broadly in line" with consensus at 4.8% when the company releases its latest quarterly results in October. The research firm forecasts a net revenue of 3.75 billion euros in the quarter, against the consensus estimate of 3.74 billion euros, according to a Friday note. "We expect 3Q26 to be characterized by largely similar trends to 2Q26, namely: 1) strong trends in the core marketing practice, supported by secular demand, new contracts ramping up, and a still-supportive ad backdrop, offset by 2) soft trends at Sapient (-4%/-5%), as bookings still have not translated into revenue. By geography, we expect MENA to remain a drag, but Europe/US to deliver c.5%," analysts wrote. "Arguably, there is limited near-term upside to guidance or forecasts, yet we think Publicis' steady performance continues to undermine the bear thesis around AI-led disintermediation, reflected in a still-attractive valuation of approximately 10% 2027E FCF yield." Looking ahead, BofA kept its underlying forecasts for the French advertising and communications group "largely unchanged" for 2026 through 2028. EPS projections over the three-year period, however, were trimmed by 1% to 2%, mainly due to currency movements and lower expected contribution from mergers and acquisitions. Meanwhile, the price objective was raised to 118 euros from 113 euros as the research firm rolled forward its framework to 2027. The stock's buy rating was retained.