Wells Fargo Raising Estimates On Interpublic Group of Cos.

Wells Fargo is out with a research report on Interpublic Group of Cos. Inc. (NYSE: IPG) and is raising earnings estimates on shares. It has a $15-$16 price target on shares.

In a note to clients, Wells Fargo writes, "IPG announced an agreement to sell approximately half of its investment in Facebook for $132m (pre-tax gain) in a privately negotiated transaction. IPG retains half of its 2006 Facebook investment, the original terms 0f which have not been disclosed. Management also announced an increase of its share repurchase authorization of $150m to $450m. We adjust our model for this one-time gain and incorporate additional changes to our FY2011 and FY2012 estimates. Our FY2011 EPS rises to $0.81 from $0.63. Our FY2012 EPS estimate remains unchanged at $0.86."

Shares of IPG closed at $8.90 yesterday.