Investing.com -- JPMorgan raised its rating on for Interpublic Group to "overweight,” also lifting its price target to $39 from $32 following Omnicom’s announcement of an all-stock acquisition. Under the deal, Omnicom will exchange 0.344 OMC shares for each IPG share, with the transaction expected to close by year-end.

The brokerage highlighted the long-term strategic benefits of the merger, projecting that cost synergies will enhance Omnicom’s earnings by 2026. While IPG’s fundamentals may lag in 2025, analysts anticipate its stock will track Omnicom’s performance, for which they have a $116 price target.

JPMorgan noted a 15% probability the deal might face hurdles, including regulatory scrutiny or shareholder dissent, but expressed confidence in the merger’s completion. Risks also include economic downturns, shifts in advertising strategies, and weaker-than-expected organic growth.

“The strategic benefits of the transaction look under-appreciated,” analyst at JP Morgan said.