WPP: Oddo BHF still 'neutral'

(CercleFinance.com) - Oddo BHF confirms its 'neutral' rating on WPP shares, with an unchanged target price of 990 pence.


Yesterday, WPP held its CMD focusing on AI and its impact on its business model and financials. Specifically, the group is targeting organic growth of 3% in the medium term and a margin of between 16% and 17%, which is higher than its previous expectations (15.5% to 16%).

Analysts are maintaining their forecasts for 2025 and beyond for the time being, Oddo BHF says, which is awaiting further details on the implementation of AI, and fears for the time being that productivity gains will be wiped out by additional, non-integrated costs (technology).

All in all, we are convinced that AI will profoundly change the agency industry, with a positive effect on profitability, but it still seems a little early to draw precise financial conclusions, the broker sums up.


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