WPP Earnings Could Get Worse Before They Get Better -- Market Talk

Dow Jones
Aug 04

0857 GMT - WPP's incoming CEO Cindy Rose will likely take actions to return the U.K. advertising group to top-line growth, but this could come at the expense of lower earnings near term, UBS analysts say in a note. "We believe the new CEO  will likely spend some time to develop her strategic plan, but we would expect any plan to focus on bringing WPP  back to growth," the analysts say. WPP might pursue acquisitions to add about 1 billion pounds in revenue, sell noncore and low-growth businesses, suspend dividends and boost staff spending, the analysts say. This would take WPP's 2026 earnings 20% below UBS's current estimates, the analysts add. UBS lowers its target price on WPP to 370 pence from 410 pence. Shares rose 0.1% to 403.70 pence. (adria.calatayud@wsj.com)

 

(END) Dow Jones Newswires

August 04, 2025 04:58 ET (08:58 GMT)

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