UBS is questioning whether WPP will experience growth again, as they maintained a 'sell' rating on the advertising and marketing company. This decision comes after reviewing disappointing results from last week and noting a 25% drop in the company's shares this year.
Deutsche Bank analysts have reduced the share price target for WPP PLC after the company provided disappointing guidance in its results on Thursday. While they maintained a 'buy' rating, they lowered the price target from 1,035p to 875p.
Shares of WPP Plc, listed in the U.S., dropped by 15% on Thursday after the large advertising company reported a decrease in revenue and provided weak forecasts due to falling sales in North America and China.
Several companies that focus on consumers have provided forecasts that did not meet investors' expectations.
WPP PLC (LSE:WPP) saw its shares drop by 18% to 634p after the advertising and marketing company announced a decrease in revenue for the previous year, as clients continue to limit their budgets. The reported revenue for 2024 was £14.7 billion, which is a 0.7% decline, although it increased by 2.3% when adjusted for comparison. The company also indicated that it does not expect growth to resume until 2025.
WPP PLC (LSE:WPP) is looking to sell its share in the research company Kantar, and this effort has gained momentum after the $1 billion sale of Kantar's market research division. The part of Kantar that focuses on TV ratings, known as Kantar Media, is being sold to the investment firm HIG Capital.
WPP PLC (LSE:WPP) has seen a recent increase in its stock price, but UBS remains negative and has maintained a 'sell' rating due to concerns about its future. While UBS raised the target price for WPP shares from 680p to 720p, they believe that the recent rise in share price since summer may not continue.
WPP PLC (LSE:WPP) saw its shares increase after it was announced that the French market research company Ipsos is discussing a possible purchase of Kantar Media. WPP holds a 40% share in Kantar.
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WPP has released its Third Quarter Trading Update for 2024, showing a reported revenue of £3,558 million, which is a 1.4% increase. The revenue, excluding pass-through costs, was £2,765 million, reflecting a decrease of 2.6%. Year-to-date, the total revenue stands at £10,784 million, with a slight increase of 0.5%.