WPP (WPP)

Sector:

Media

Index:

FTSE 100

753.60p
   
  • Change Today:
      13.80p
  • 52 Week High: 967.20
  • 52 Week Low: 681.20
  • Currency: UK Pounds
  • Shares Issued: 1,074.84m
  • Volume: 2,204,996
  • Market Cap: £8,100m
  • RiskGrade: 162

Berenberg lowers target price on WPP

By Iain Gilbert

Date: Friday 08 Jul 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their target price on media giant WPP on Friday from 1,230.0p to 915.0p and reiterated its 'hold' rating on the stock, stating it was "not yet time to buy".
Berenberg stated that while its new price target offered upside and it thinks agencies are generally oversold, it also noted that - on its new 2023 estimates, which were 7% below consensus - the stock was not yet at trough forward price-to-earnings multiples.

"Despite the fact that we do anticipate weaker trading for 2023, it is clear that the company has so far delivered a good performance in 2022. The message from the agencies has been consistent - they do not yet see any sign of the downturn that the market is now anticipating. We believe that slower recovery in certain costs like travel and in hiring (given the tight labour supply) could even drive modest upside surprise in the H1 margin. That being said, we do not change our underlying estimates for FY 2022, other than to reflect the latest FX situation. For Q2, we forecast organic growth of 6%, with an H1 headline PBIT margin (preassociates) of 11.7%," said the analysts.

Moreover, the German bank also thinks that WPP's lower net income to cash conversion means that, while the stocks trade at apparently similar P/E levels, on a free cash flow yield basis the stock was still "considerably more expensive" than French rival that of Publicis.



Reporting by Iain Gilbert at Sharecast.com

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

WPP Market Data

Currency UK Pounds
Share Price 753.60p
Change Today 13.80p
% Change 1.87 %
52 Week High 967.20
52 Week Low 681.20
Volume 2,204,996
Shares Issued 1,074.84m
Market Cap £8,100m
RiskGrade 162

WPP Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
79.71% above the market average79.71% above the market average79.71% above the market average79.71% above the market average79.71% above the market average
90.91% above the sector average90.91% above the sector average90.91% above the sector average90.91% above the sector average90.91% above the sector average
Price Trend
21.71% below the market average21.71% below the market average21.71% below the market average21.71% below the market average21.71% below the market average
2.13% below the sector average2.13% below the sector average2.13% below the sector average2.13% below the sector average2.13% below the sector average
Income
39.65% above the market average39.65% above the market average39.65% above the market average39.65% above the market average39.65% above the market average
57.89% above the sector average57.89% above the sector average57.89% above the sector average57.89% above the sector average57.89% above the sector average
Growth
95.04% below the market average95.04% below the market average95.04% below the market average95.04% below the market average95.04% below the market average
90.91% below the sector average90.91% below the sector average90.91% below the sector average90.91% below the sector average90.91% below the sector average

What The Brokers Say

Strong Buy 2
Buy 4
Neutral 8
Sell 2
Strong Sell 2
Total 18
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

WPP Dividends

  Latest Previous
  Final Interim
Ex-Div 06-Jun-24 12-Oct-23
Paid 05-Jul-24 03-Nov-23
Amount 24.40p 15.00p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 1,562,055 @ 753.60p
16:35 1,281 @ 753.60p
16:35 922 @ 753.60p
16:35 361 @ 753.60p
16:35 4,580 @ 753.60p

WPP Key Personnel

CEO Mark Read
CFO Joanne Wilson

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