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Research Alert: CFRA Keeps Hold Opinion On Adrs Of Wpp Plc
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Research Alert: CFRA Keeps Hold Opinion On Adrs Of Wpp Plc
Aug 8, 2025 2:55 AM

05:35 AM EDT, 08/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price is cut to USD29 (from USD33). This is based on 2025 P/E of 6.1x, which is discounted against its five-year historical average of 9.7x and the industry forward average of 8.4x. We think our relative valuation appropriately reflects WPP's ( WPP ) weaker growth track record against its own performance (three-year net revenue CAGR through 2022-2024: -1.26%) and its regional peer's performance (Publicis' three-year net revenue CAGR through 2022-2024: +3.57%). We adjust our EPS estimate to GBP3.50 (from GBP3.65) for 2025 and GBP3.60 (from GBP3.95) for 2026. We think the upcoming CEO transition introduces uncertainty around WPP's ( WPP ) ability to navigate the already challenging operating environment. While WPP is seen attempting to tackle its recent profit decline via tighter cost controls, growth prospects remain opaque. Nevertheless, a sustained increase in net new billings and evidence of constant progress towards the top of the league table could be the catalyst for a re-rating, in our opinion.

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