1028 GMT - WPP might need to take a temporary profitability hit to be more competitive, after recent account losses make a second-half recover look unlikely, analysts at Bank of America say in a research note. "The CEO's recent resignation could result in a strategy realignment as we think WPP may need to temporarily reduce profitability to restore competitiveness," the analysts say. The U.K. advertising group is expected to report a 2.6% fall in organic net sales growth, dragged down by account losses, Bank of America estimates. The reduced likelihood of a second-half recovery means WPP could change its guidance to a decline of 2% to 3% in organic growth from a fall of up to 2% currently, according to Bank of America. Shares trade broadly flat. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
June 26, 2025 06:30 ET (10:30 GMT)
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