BofA Maintains a Sell Rating on WPP PLC (WPP)

WPP PLC (NYSE:WPP) is one of the 10 Undervalued European Stocks to Invest in Now. On June 9, Bank of America Securities analyst Adrien Hilaire maintained a Sell rating on WPP PLC (NYSE:WPP) with a price target of p560.00. The rating came after the company announced on the same day that its CEO, Mark Read, was set to leave in December 2025, resulting in uncertainty about WPP PLC’s (NYSE:WPP) operations.

The analyst based the rating update on the company’s current and future performance, raising concerns about potential near-term negative developments that may occur due to Read’s departure. Hilaire reasoned that while Read rolled out various notable changes, including the launch of WPP Open and the disposal of a stake in Kantar, WPP PLC (NYSE:WPP) has faced complications with the loss of major client relationships, which the analyst anticipates could risk continued losses in 2025.

The company’s organic sales growth also poses a concern for the analyst, who stated that it has been lagging behind Publicis, its closest competitor. WPP PLC’s (NYSE:WPP) 2025 guidance was not reiterated in the recent press release, which, according to the analyst, points towards a potential downward revision, especially since the company reported soft performance in the first half of the year.

Hilaire also stated that WPP PLC (NYSE:WPP) would have to undertake balance sheet readjustments and consider a margin reset if it intends to regain its competitive standing.

Headquartered in London, United Kingdom, WPP PLC (NYSE:WPP) is a creative transformation company that provides communications services. Its operations take place through the Global Integrated Agencies, Public Relations, and Specialist Agencies segments.

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