WPP's production business reckons it can grow even as its market goes into reverse, according to Citigroup, which came away from an investor day holding its "neutral" rating and £4.30 target.
The bank spent yesterday at Devon's Point, the freshly opened east London base of WPP Production, hearing from divisional bosses Richard Glasson and Laurel Wooten.
The pitch was upbeat. Management believes it can outgrow a declining market by clawing more work in-house, tapping its end-to-end capabilities and steering towards higher-growth corners of the industry.
Citi flagged scale and technology as the division's competitive weapons.
It also picked up on the unit's growing role within WPP's integrated offer since the Elevate28 strategy launched, with deeper penetration of the group's own client roster held up as a possible engine of growth.
For now, though, Citi is staying on the fence.
