[THE INVESTOR] Innocean Worldwide’s earnings will gain momentum from acquisition of US advertising company David and Goliath, said Hyundai Motor Investment and Securities on Dec. 15, raising the target price to 95,000 won (US$87.27) from 90,000 won.
The deal will push its gross profit next year up 10.9 percent and operating profit and net profit up 4.9 percent and 4.3 percent, respectively, said analyst Hwang Seong-jin.
The LA-based firm has a staff of 200 and its revenue last year was 52.2 billion won, with 49.0 billion won in gross profit and 4.2 billion won net profit. Its earnings will be reflected in Innocean’s balance sheet from January, according to the analyst.
The firm remains strong as it expands overseas, and will recover at home on the back of rising demand for marketing campaigns in time for PyeongChang Winter Olympics, said Hwang.
The company’s fundamentals are strong and it has expanded its businesses. This momentum will lead to higher dividends and shareholder values, he added.
By Hwang You-mee (firstname.lastname@example.org)