WPP: Credit Suisse raises target price

(CercleFinance.com) - Credit Suisse maintains its 'underperform' rating on the shares of British advertising group WPP, while raising its price target to 835p (from 745p - current price: 893 pence, -2.
3%) "driven by lower net debt".

In addition, the organic fall in 2020 (-8.2%) is in line with expectations: both the consensus and Credit Suisse were expecting a decline of 8.3%.

While structural issues around the agency's business model remain, investors' attention is focused on the recovery in advertising and inflation, which benefits advertising agencies, the broker explains.

For 2021 and 2022, the broker has reduced its EPS estimates by -1% and -2% respectively.


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