WPP: Oddo now prefers over Publicis
(CercleFinance.com) - Oddo has reversed its hierarchy of stocks within the advertising agencies and now favours WPP (Outperform vs.
Neutral) over Publicis (Neutral vs. Outperform).
Analysts are targeting a price of 1,200p (vs. 1,250p previously) for WPP and 70 euros (vs. 72 euros) for Publicis.
The analyst expects slightly positive organic growth for agencies in 2023 and considers WPP to be more attractive than Publicis: the stock has underperformed its competitor by 19% YTD, Oddo notes.
Investors' perception of WPP's technology offering could improve, Oddo adds, although they do not believe that it is structurally worse than Publicis.
Finally, WPP should post stronger EPS growth (+10 vs. +4%), the analyst says, for whom the market performance of both stocks over the past nine months encourages reversing the hierarchy and now favouring WPP.
Copyright (c) 2022 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.
Neutral) over Publicis (Neutral vs. Outperform).
Analysts are targeting a price of 1,200p (vs. 1,250p previously) for WPP and 70 euros (vs. 72 euros) for Publicis.
The analyst expects slightly positive organic growth for agencies in 2023 and considers WPP to be more attractive than Publicis: the stock has underperformed its competitor by 19% YTD, Oddo notes.
Investors' perception of WPP's technology offering could improve, Oddo adds, although they do not believe that it is structurally worse than Publicis.
Finally, WPP should post stronger EPS growth (+10 vs. +4%), the analyst says, for whom the market performance of both stocks over the past nine months encourages reversing the hierarchy and now favouring WPP.
Copyright (c) 2022 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.