Morgan Stanley resumed coverage of Publicis shares on Monday, with an 'overweight' recommendation and a price target of 90 euros, believing that the French communications group has a sustainable competitive advantage over its rivals, but one that has not been taken on board by the market.

"Publicis is ahead of the other major advertising agencies in the race for differentiation, and we believe it should maintain its advantage in the long term," the broker points out in a study devoted to the media sector.

The acquisitions of Sapient and Epsilon have consolidated Publicis' product offering and diversified its revenue sources outside the traditional advertising segment," it adds.

Morgan Stanley points out that Publicis is known for its focus on target integration and operational efficiency, an approach that enables it to generate above-average profit margins.

Against this backdrop, the broker says it expects the French group to continue to outperform its peers.

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