WPP: Oddo BHF raises TP - but still on hold
(CercleFinance.com) - On Friday morning an Oddo BHF analyst confirmed a "neutral" rating on the WPP share, although has raised its target price for it.
The broker now targets 700 pence, vs. 650 pence previously, representing upside potential of 8%.
Oddo expects a 10% organic decline in 2020 with a scenario of a 9.5% drop in Q3 and -7% in Q4. These assumptions for H2 are close to those the broker has for Publicis. It expects operating income of 1.2 billion pounds, representing a margin of 12.5%. This forecast is based on assumed cost savings of 900 million pounds, above the £700m/£800m budget range by management. As with Publicis, analysts believe it is credible that WPP will exceed its target, the broker says.
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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.
The broker now targets 700 pence, vs. 650 pence previously, representing upside potential of 8%.
Oddo expects a 10% organic decline in 2020 with a scenario of a 9.5% drop in Q3 and -7% in Q4. These assumptions for H2 are close to those the broker has for Publicis. It expects operating income of 1.2 billion pounds, representing a margin of 12.5%. This forecast is based on assumed cost savings of 900 million pounds, above the £700m/£800m budget range by management. As with Publicis, analysts believe it is credible that WPP will exceed its target, the broker says.
Copyright (c) 2020 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.