LONDON (ShareCast) - Panmure Gordon has kept its positive stance on advertising and media giant WPP, highlighting good read-across from sector peer Omnicom.

The broker maintained its 'buy' rating and 1,550p target price for the stock.

WPP's share price rose strongly on Tuesday after Omnicom - one of the 'Big Four' global ad agencies alongside WPP, Interpublic and Publicis - reported third-quarter organic revenue growth of 4.1%.

Panmure analyst Alex DeGroote highlighted that this is an acceleration of the first-half trend with growth equalising out to 3.2% for first nine months of 2013.

"Publicis conversely produced a deceleration in sequential organic growth in Q3, from 5% to 3.5%. On balance, however, there is a positive tone to both company statements, including the outlook," he said.

The analysts believes that this bodes well for WPP, with Sir Martin Sorrell's UK-listed firm due to report its own third-quarter figures on October 24th.

"We recently napped WPP as our Q4 13 top pick ([amongst] media large caps), citing accelerating revenue trends, scope for multiple expansion and likely fall-out from the Omnicom/Publicis [merger] as positive factors," DeGroote said.

The stock was down 1.56% at 1,260.99p on Wednesday morning, pulling back after a +3.1% jump the day before.

BC

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