A unit of WPP (LON:WPP) has lost the business of banking giant HSBC (LON:HSBA), City A.M. reports. The news marks a blow for the advertising giant whose chief executive Sir Martin Sorrell recently stepped down from the company following an investigation looking into allegations of ‘personal misconduct’.
WPP’s share price has fallen into the red in today’s session, having given up 1.23 percent to 1,286.50p as of 10:49 BST, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent lower at 7,781.34 points. The group’s shares have lost just under a quarter of their value over the past year, as compared with about a 3.6-percent gain in the Footsie.
WPP loses HSBC contract
City A.M. reported yesterday that HSBC had moved its media buying account from WPP’s media agency Mindshare to PHD, which is owned by a competitor, Omnicom. The Asia-focused lender decided to end its 15-year relationship with Mindshare following a global agency review, which was managed by consultants ID Comms.
The move marks a blow for WPP, whose chief executive Martin Sorrell left the company earlier this year. The advertising giant’s chairman Roberto Quarta is further facing investor backlash over the group’s ousting of Sorrell, with proxy shareholder service Glass Lewis having recommended that investors oppose his re-election at the ad giant’s annual general meeting on June 13.
Analysts on advertising giant
The 27 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,400.00p on the shares, with a high estimate of 1,940.00p and a low estimate of 1,060.00p. As of May 18, the consensus forecast amongst 29 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.