WPP: UBS initiates with 'buy' rating.
(CercleFinance.com) - UBS initiated coverage of WPP, the world's largest advertising group, with a "buy" rating and a target price of 2,050 pence.
In a sector note, the brokerage said the shares' valuation looks "attractive" after underperformance (-15% year-to-date) post weak 2017 guidance.
UBS believes a net sales recovery in the second half of the year should provide a re-rating catalyst.
"While structural threats exist, we believe they are more than priced in," it added.
UBS also thinks WPP is well positioned to weather structural headwinds, thanks to its media buying scale, proprietary data assets, digital strength, and a strong geographical mix.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a sector note, the brokerage said the shares' valuation looks "attractive" after underperformance (-15% year-to-date) post weak 2017 guidance.
UBS believes a net sales recovery in the second half of the year should provide a re-rating catalyst.
"While structural threats exist, we believe they are more than priced in," it added.
UBS also thinks WPP is well positioned to weather structural headwinds, thanks to its media buying scale, proprietary data assets, digital strength, and a strong geographical mix.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.