WPP: Liberum maintains buy rating
(CercleFinance.com) - Liberum is maintaining its buy rating on the WPP share, with a target price of 1450 pence, seeing significant upside potential in the stock.
Although the media giant's latest results confirmed that revenues were down, the broker does not believe that the company's business model, based on a network of agencies, can be called into question.
Liberum believes that WPP will simply have to reinvent itself in the face of market changes and reduce its reliance on traditional media in order to rekindle its performance.
Should this be the case, the broker says that WPP could benefit from a revaluation similar to that made by RELX Group (formerly Reed Elsevier), whose share price had recovered after years of profit warnings and changes in management.
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