Media
By Michele Maatouk
Date: Friday 25 Jun 2021
LONDON (ShareCast) - (Sharecast News) - Credit Suisse upgraded WPP to 'neutral' from 'underperform' on Friday and lifted the price target to 1,060p from 835p as it argued that a record advertising recovery is overriding structural concerns.
"With both GroupM and MAGNA significantly increasing 2021 forecasts (to mid-teens) and predicting a record advertising recovery, structural concerns about agency holding companies have taken a back seat," the bank said.
"This could continue for some time as government stimulus and recovery in some pandemic-impacted sectors such as travel, telecom, media & entertainment and retail kick in."
Credit Suisse attributed the increase in the target price to earnings upgrades, the roll-over of net debt, and a rise in terminal growth to 1% from 0%.
The bank said the best way to gain exposure to the subsector is through Martin Sorrell's outperform-rated S4 Capital, "given its multiple levers for market share gain". CS said M&A alone could add around 45% to S4's EBITDA and 30% to valuation, on its numbers.
At 1545 BST, WPP shares were up 2% at 999.60p.
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Currency | UK Pounds |
Share Price | 57.70p |
Change Today | -1.80p |
% Change | -3.03 % |
52 Week High | 146.00 |
52 Week Low | 36.94 |
Volume | 1,011,501 |
Shares Issued | 596.92m |
Market Cap | £344.42m |
Value |
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Price Trend |
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Income |
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Growth |
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No dividends found |
Time | Volume / Share Price |
12:25 | 20,950 @ 57.96p |
12:22 | 362 @ 57.70p |
12:13 | 11,540 @ 57.85p |
12:10 | 50,000 @ 57.87p |
12:08 | 119 @ 57.25p |
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