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New York-based The Interpublic Group of Companies, Inc. (IPG) provides advertising and marketing services worldwide. With a market cap of $9.5 billion, Interpublic operates through Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions segments.

Interpublic has significantly underperformed the broader market over the past year. IPG stock has plummeted 20.9% over the past 52 weeks and 10.5% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 12.3% gains over the past year and a marginal 19 bps uptick in 2025.

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Zooming in further, IPG has also underperformed the Communication Services Select Sector SPDR ETF Fund’s (XLC) 22.8% surge over the past year and 4% returns in 2025.

However, Interpublic’s stock prices surged 4.5% following the release of its mixed Q1 results on Apr. 24. The company’s financials compared to previous fiscal year painted a slightly grim picture due to the impact of account activity in 2024, but it was mostly expected and offset by the solid performance of IPG’s IPG Mediabrands, Deutsch, Golin, and Acxiom divisions. Its organic net revenues for the quarter decreased 3.6%, and overall total revenues dropped 6.9% year-over-year to $2.3 billion. Meanwhile, its adjusted EBITA before restructuring charges and deal costs declined 9.2% year-over-year to $186.5 million, and its adjusted net income decreased by $11.3 million compared to the year-ago quarter to $124 million.

On a more positive note, the company’s adjusted EPS of $0.33 surpassed the consensus estimates by 10%. Moreover, IPG maintained its quarterly dividend payout of 33 cents per share, showcasing its commitment to shareholders.

For full fiscal 2025, ending in December, analysts expect IPG to report a 5.4% year-over-year decline in adjusted EPS to $2.62. The company has a mixed earnings surprise history. While it missed the Street’s bottom-line estimates once over the past four quarters, it surpassed or met the projections on three other occasions.

The stock holds a consensus “Moderate Buy” rating overall. Of the nine analysts covering the stock, opinions include four “Strong Buys” and five “Holds.”

This configuration is slightly more bullish than three months ago, when one of the analysts covering IPG gave a “Strong Sell” recommendation.

On Apr. 25, Barclays (BCS) analyst Julien Roch reiterated an “Equal Weight” rating in IPG, but lowered the price target from $36 to $34.

As of writing, IPG’s mean price target of $31.38 represents a 25.1% premium to current price levels, while its street-high target of $35 suggests a staggering 39.5% upside potential.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.