Deutsche Bank has reiterated its 'buy' rating on M&C Saatchi PLC (AIM:SAA), setting a 220p target price, saying management changes and a tighter strategic focus give confidence the ad group can navigate tougher markets.
Analyst Steve Liechti noted that while trading across the sector has weakened, Saatchi’s cost actions and upgraded systems should help underpin recovery.
Half-year results showed like-for-like revenues down 10% in the second quarter, following flat growth in the first.
The company now expects full-year sales to fall by about 5%, citing client caution and project delays linked to US tariff uncertainty.
There were positives: The Issues division grew 6% in the half, Media was up 5%, and the Middle East delivered a striking 47% rise.
Management expects the stronger pipeline visibility to translate into a better fourth quarter.
Deutsche Bank said macro pressures remain, but kept faith in the stock’s long-term growth potential.
In afternoon trading, the shares were up 4% at 153p.