WPP share price: Numis continues to see ad giant as ‘reduce’

Numis continues to see WPP (LON:WPP) as ‘reduce,’ doubting whether the advertising giant can deliver in the medium term, Citywire reports. The comments came after the blue-chip group updated investors on its performance last week, saying that its 2018 had come in at the upper end of its guidance, while cautioning that it expects the current year to be challenging.

WPP’s share price has been little changed in London in today’s session, having inched 0.11 percent higher to 874.40p as of 14:57 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.43 percent higher at 7,165.32 points. The group’s shares have lost more than 30 percent of their value over the past year, as compared with about a 0.8-percent gain in the Footsie.

Numis downbeat on WPP

Numis reaffirmed WPP as ‘reduce’ yesterday, with a price target of 800p on the shares. Citywire quoted the broker’s analyst Steve Liechti as commenting that the ad giant’s full-year numbers were slightly above Numis’ forecasts.

“We believe there were still market concerns that WPP would miss given [French rival] Publicis’ experience, even though guidance was updated for the better in mid-December,” he pointed out, adding, however, that the broker remained “negative mid-term given the scale of the task and change required as WPP re-orients to market/client demand”.

Other analysts on ad giant

The 24 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,005.00p on the shares, with a high estimate of 1,520.00p and a low estimate of 800.00p. As of March 2, the consensus forecast amongst 27 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.

As of 15:16 GMT, Tuesday, 05 March, WPP PLC ORD 10P share price is 874.40p.