WPP: market ignores raised targets

(CercleFinance.com) - WPP shares are down slightly in London on Wednesday, despite better-than-expected quarterly figures, with the group increasing its annual forecasts.


WPP shares are down 0.5% at around 10.45am, while the FTSE 100 index was up 0.4%.

In Q1, the world's leading advertising company posted organic growth of 9.5%, well above the consensus of 5.8%.

Better still, WPP now says it expects organic revenue growth of 5.5% to 6.5% for FY 2022, compared with a previous forecast of around 5%.

The market was not moved by this target increase and focused on the disappointment of its competitors' much better performance.

UBS teams noted that from January to March, the French group Publicis recorded organic growth of 10.9% while Omnicom and Havas, two of the group's other rivals, generated organic growth of 11.9% and 11.3% respectively.

On the market, WPP shares have fallen 11% YTD, while Publicis shares have limited their decline to less than 3%.


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