UBS is sticking with a 'Sell' rating on WPP PLC (LSE:WPP) despite Tuesday's better-than-expected first-quarter update, with the Swiss bank arguing that the advertising group's near-term recovery story still lacks a catalyst. The broker left its 12-month price target unchanged at 210p, versus a share price of 259p in the note, implying 18.8% forecast price downside before dividends.
WPP plc (WPP) Q1 2026 Sales/Trading Call Transcript
WPP PLC (LSE:WPP) shares were searching for direction after the advertising group reported a decline in first-quarter revenue but said performance was in line with expectations as it reiterated full-year guidance. Revenue came in at £3 billion, down 6.6% on a reported basis and 4.0% on a like-for-like basis.
WPP PLC faces further earnings pressure in 2026 despite a new medium-term growth plan, according to Deutsche Bank, which has cut its price target to 425p from 510p while retaining a 'buy' rating. Following the group's full year 2025 results and strategy update last week, analyst Steve Liechti said new chief executive Cindy Rose's 'Elevate28' plan offers a clearer path to mid-term growth, which is positive for a “lowly rated stock with market sentiment at a low”.
WPP plc is a speculative turnaround play with a Buy rating and a £4/share price target, reflecting deep undervaluation. WPP faces ongoing structural challenges, client losses, and slow AI adoption, but manageable debt and cost-cutting support a potential recovery. Even under conservative assumptions — negative AEPS growth, margin pressure, and a halved dividend — WPP could deliver triple-digit returns over two years.
WPP PLC shares fell 4.5% to 260p after the advertising group unveiled a sweeping overhaul and cost-cutting plan as new chief executive Cindy Rose acknowledged recent underperformance and set out a three-year path back to growth. The group, which dropped out of the FTSE 100 in December, said it will move from a holding company structure to a single integrated company, streamlined into four operating units – WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions – across four regions.
New boss Cindy Rose outlined her plan to lift the advertising group out of the doldrums as the board cut its final dividend to 7.5 pence a share from 24.4 pence a year before.
WPP faces a crisis as it loses major clients and endures a 70% drop. AI disruption risk is overstated for WPP's core market. A recovery in FY2026 could re-rate the stock.
WPP plc is deeply undervalued, trading at a 4.4x P/E, despite recent operational setbacks and sector-wide headwinds. WPP faces execution risk, client losses, and a likely 50% dividend cut, but remains a fundamentally sound, IG-rated business with turnaround potential. My price target for WPP stock is lowered, reflecting a more conservative outlook, but I reiterate a Buy rating for risk-tolerant investors.
WPP PLC (LSE:WPP) shares were up 4.5% at 301.3p in the first half hour of trading on Monday, a sharp rebound that comes just as predators are reported to be sizing up the battered advertising group. The Sunday Times revealed that France's Havas has held high-level discussions about a possible move, while private equity houses Apollo and KKR have also examined parts of the business.
Shares of WPP rose more than 5% on Monday following a report by The Times that the British advertising firm has received takeover interest from French rival Havas and private equity firms Apollo and KKR.
EXCLUSIVE: ‘We definitely see AI as a growth opportunity, not as deflationary,' Stephan Pretorius said.