Does WPP Have a Competitive Advantage Over Peers?

Stock analysts examine advertising giant WPP - after a tough year, does the firm have the clout to turn its fortunes around?

Brian Colello, CPA 12 September, 2018 | 8:22AM

Although Enterprise Services Names Are Broadly Overvalued, WPP Is an Attractive Long Opportunity

The decline of WPP's (WPP) stock due to disappointing 2018 results and the resignation of CEO Martin Sorrell has created an attractive entry point for this narrow-moat name. The shares are trading at a discount to our £15 fair value estimate.

At current levels, WPP's dividend yields close to 5%. To our surprise, while Sorrell initially disputed the improper use of funds and personal misconduct allegations brought forth by the firm, WPP stated on April 14 that Sorrell had resigned, although he continued to deny the allegations.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
WPP PLC588.20 GBX1.41

About Author

Brian Colello, CPA  is a senior stock analyst with Morningstar.

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