Gold has topped $4,200. Here’s why Yardeni thinks the rally could go even higher.
Investing.com - Barclays (LON:BARC) downgraded WPP Plc (NYSE:WPP) stock rating from Equalweight to Underweight on Monday, while reducing its price target to GBP5.50 from GBP7.00.
The downgrade comes despite WPP’s significant underperformance year-to-date, with shares down 44% compared to the DJSTOXX600, resulting in what Barclays describes as an "inexpensive" valuation at 7x 2025 estimated P/E ratio.
Barclays cited several factors for the downgrade, including uncertainties created by management changes, noting that media stocks with new CEOs typically underperform by 10% between the CEO change announcement and the unveiling of the new strategy.
The firm also expressed concern about WPP defending $1.4 billion in media billings, warning the company is "likely to lose some of that based on recent track record," with a worst-case scenario potentially impacting organic growth.
Additional factors behind the downgrade include WPP’s warning about first-half margins falling below last year’s levels and Barclays’ estimates being 2-3% below consensus for fiscal year 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.