Boost for True North

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With its share price down 33% from a spring peak of $27.75, True North Communications Wednesday received a positive recommendation from Donaldson, Lufkin & Jenrette, where Susan Decker called True North "exceptionally undervalued" in giving the company an "outperform" rating Wednesday. She wrote that she expects new-business wins from the first half of the year to boost revenue and profits in the second half, and she expressed optimism about a pending initial public offering of the agency holding company's TN Technologies.

True North's stock is trading at a price/earnings ratio 30% lower than peers Omnicom Group, WPP Group and Interpublic Group of Cos., Ms. Decker wrote, when only a 10% to 15% discount is warranted. Ms. Decker's analysis followed a recent upgrade on True North from Merrill Lynch analyst Lauren Fine.

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