WPP: Credit Suisse raises its target price

(CercleFinance.com) - Credit Suisse says that the investor day organised by WPP "gave a positive growth outlook for the business".


After four years of negative growth (2017-2020), WPP is targeting organic growth of 2%-3.5% by 2023 and wants to increase its operating margin to 15.5%-16% by 2023, the broker reports.

Credit Suisse is still reducing its adjusted EPS estimates for 2020 and 2021 by 7% and 4.9% respectively, although expects growth of 6.6% and 14.7% for 2022 and 2023.

While the market outlook seems "conducive to advertising recovery", the broker believes that S4 Capital and Publicis are better positioned.

The analyst therefore maintains its "underperform" rating on WPP, although has increased its corresponding target price to 745p, from 608p previously (below its current price of 822p).



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