WPP PLC (LON:WPP) is widely expected to name its former digital boss Mark Read as the advertising giant’s new chief executive, in the wake of Martin Sorrell’s departure earlier this year, according to media reports.
Read has been seen as the leading internal candidate to become CEO, having stepped up to become WPP’s joint chief operating officer – together with Andrew Scott - in April after the group’s founder Sorrell quit after 33 years in charge following a complaint of personal misconduct against him, which he denied.
READ: WPP up as it posts above-forecast first-quarter net sales, repeats full-year guidance
Reuters quoted a City source as saying Read would be given the job as long as the two sides can agree terms.
It said WPP, which is due to publish second-quarter results next Tuesday, declined to comment on the report.
In a preview of WPP’s numbers, analysts at Deutsche Bank said: “Coming at the end of a quarter where the ad agency sector has delivered volatile organic growth, we think WPP will report a solid, unspectacular set of results, with broadly flat organic growth. If anything, the risk is to the upside with comps easing 250 bps vs. 1Q.”
They added: “With the shares down c.20% over the past 12 months and 2018E PE multiple of 11x/ FCF yield 10%, an in-line set of results should be enough to provide some modest upside for the shares.”
“More fundamentally,” the analysts continued, “we expect WPP to announce its new CEO along with its results. As widely reported in the press, internal candidate Mark Read is likely to be appointed and should provide more stability than an outside appointment.”
They concluded: “We don’t expect any modifications to guidance or a marked change of strategy. Although we think WPP’s valuation is low, the process of integration and simplification will be lengthy.”