WPP's Path Back to Growth Remains Uncertain

Dow Jones
08/10

0617 GMT - WPP's latest results show the U.K. advertising group is making progress, but it still faces an uncertain path to return to top-line growth, Citi analysts say in a research note. While WPP's revenue less pass-through costs is still in decline on a like-for-like basis, trends are improving, the analysts say. Moreover, the company is showing signs of strategic progress despite being only six months into a three-year program, they add. Citi raises its target price on the stock to 430 pence from 285 pence. "However, we believe a wait-and-see approach is prudent given the steep re-rating, and while we acknowledge the clear progress, uncertainty remains regarding the path back to growth," the analysts say. WPP shares closed at 411.40 pence on Friday.

 

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