Quiet Optimism as Bear Stearns Begins Tracking Publicis

Bear Stearns has just initiated coverage of Publicis Groupe in recognition that the Paris-based holding company now has the global scale and quality of assets to become “a top player” in the marketing communications business.

However, Bears Stearns analyst Alexia Quadrani tempered her enthusiasm for the $5 billion company’s stock, citing the slow pace of the industry recovery, particularly in Europe, and the fact that Publicis shares have enjoyed a strong run-up this year, climbing 34 percent year-to-date and 87 percent from March lows.