WPP Shares Undervalued, say Analysts

Morningstar analysts believe this FTSE 100 advertising giant remains significantly undervalued despite a bump in the share price after recent results

Ali Mogharabi 4 March, 2019 | 1:29PM

WPP CEO Mark Read

While WPP’s (WPP) fourth-quarter results displayed continued weakness in the North America market, they did provide a relief as overall organic net revenue declined a bit less than expected. The turnaround remains around nine months away; however, as mentioned in previous notes, we expect further indications of a recovery, such as improving organic sales in the US, to surface in the second half of this year.

We expect the impact of WPP’s net account wins in late 2018 to bear fruit in late 2019. This quarter’s results along with the net wins, and according to the WPP, improvement in talent attained, display the effectiveness of the firm’s brand equity economic moat source, or competitive advantage.

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About Author

Ali Mogharabi  is an equity analyst for Morningstar

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