Rothschild Redburn initiated coverage on WPP Plc with a Buy rating and a price target of GBP4.35, citing the advertising company's ongoing simplification efforts.
WPP's restructuring program is now in its eighth year, representing the third major reorganization under its third CEO. Current CEO Cindy Rose OBE follows a similar strategy but benefits from prior groundwork.
WPP aims to transition from a holding company to a single company by 2028, centered around four major disciplines: Media, Creative, Production and Enterprise Solutions. The company targets organic growth, improved margins, and strong cash conversion from a low base in 2026.
Rothschild Redburn does not expect a full recovery but believes a partial recovery is sufficient for equity appreciation from current 22-year lows. The firm sees 60% upside potential to 435 pence.
