WPP PLC (LSE:WPP)’s recent rebound has failed to shift sentiment at UBS, which doubled down on a ‘sell’ rating for the advertising firm on poor prospects ahead.
Though UBS upped WPP’s share price target from 680p to 720p, the bank suggested a resurgence in its share price since the summer was unlikely to last.
“We think this reflects a strong performance in account wins during [the second half of 2024],” UBS said in a note, pointing to deals with the likes of Amazon and Unilever.
“However, in our view the upcoming catalyst path remains negative and we retain our sell rating.”
Guidance for 2025, which UBS forecast would lay out growth of 1-2%, was likely to “underwhelm,” analysts said.
Performance over the year was also set to be second-half weighted, leaving little scope for organic growth in the coming months as recent strength in account reviews could reverse.
“It recently lost the US$500 million Volvo media account, and its Mars account is under review,” UBS flagged.
UBS cut WPP’s 2025 margin estimate from 15.1% to 14.9% and also signalled lower earnings per share expectations for the year.
Shares fell by 3.3% to 787.40p on Monday.