An update has come out today on Interpublic Group of Companies (IPG), in which senior equity analyst Steven Ralston, CFA is restating his Hold rating on the company.  We excerpted the following details:

'Interpublic Group commands a leading position among the independent advertising and communication firms. The company's increased investments to improve financial controls and increase transparency are major positives. In addition, new business wins should enhance top-line growth.

'However, intensifying competition, increased professional fees associated with the implementation and compliance with Sarbanes-Oxley, and uncertainties involved with the SEC investigation are concerns. Due to the negative earnings and erratic cash flow being reported by the company, shares of Interpublic Group are better valued on a price-to-sales (revenues) basis.

'Over the last few years, the stock has traded in a wide price-to-sales range of 3.7 to 0.6, with the most of the recent price action below 1.0 times revenue. The recent decline in the stock has established a new five-year low in valuation of 0.56 times revenue. Hence, the Hold rating is maintained. The target price of $10.75 is 1.4 times 12-month trailing revenue.'