WPP gets double-downgrade to sell at UBS over tech exposure
By Steve Goldstein
Ad agency WPP got a double-downgrade, to sell from buy, at UBS, in a note published Thursday.
The firm argues WPP's (UK:WPP)(WPP) organic sales growth will be below consensus and below the sector for both this year and the medium term, and that free cash flow will remain at depressed levels this year, limiting any share buyback.
UBS noted that WPP has high exposure to TMT clients compared to rivals, and GroupM has been growing more slowly than some of its peers.
Analysts led by Adam Berlin also cut WPP's price target to 700 pence from 1,200 pence.
WPP shares slumped 3% to 737 pence in morning trade in London.
-Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
01-11-24 0527ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
Morningstar’s Guide to Investing in Stocks
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst