WPP: Morgan Stanley raises target price

(CercleFinance.com) - Morgan Stanley raised its target price for British ad firm WPP to 1,060 pence from 1,025 pence, notably to reflect the planned sale of the group's market research unit, Kantar.


"Organic net sales growth will be key to multiple expansion," the brokerage wrote in a note to clients.

Given recent sterling weakness, Morgan Stanley has raised its 2019 earnings forecasts by 3%, also factoring in the Kantar sale.

For 2020-2023, the net effect is a 1-2% EPS reduction, the broker added, keeping an "equal weight" rating on the stock.

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