Stock in Focus: WPP

Morningstar analysts believe that shares in the advertising giant, which parted company with founder Sir Martin Sorrell this year, are undervalued

Ali Mogharabi 22 August, 2018 | 2:42PM
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WPP Faces Challenges

Morningstar analysts rate advertising giant (WPP) as a four-star stock, as the company is trading below its fair value estimate of £15 per share.

We expect profit margin to increase slightly from the 12.5% range in 2017 to over 14% by 2024. We have not modelled significant changes in our 10-year average margins, as we believe WPP’s efficiencies in talent management will offset growth in compensation and slightly lower long-term margins on digital ads.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
WPP PLC984.00 GBX-0.63Rating

About Author

Ali Mogharabi  is an equity analyst for Morningstar