In a report released today, Cameron McVeigh from Morgan Stanley maintained a Hold rating on Stagwell (STGW – Research Report), with a price target of $8.00.
Cameron McVeigh has given his Hold rating due to a combination of factors influencing Stagwell’s current and future performance. The company has set ambitious long-term revenue targets, aiming for significant growth by 2029. However, there is a cautious outlook on the near-term advertising spend trends, which could impact the company’s ability to meet these targets.
Moreover, while Stagwell is making strategic moves to simplify its capital structure and business lines, and is focusing on cost-saving measures through AI-driven technologies, the success of these initiatives remains to be seen. The reiterated guidance for 2025 provides some confidence, but the potential risks associated with broader macroeconomic conditions and marketing budget constraints contribute to the Hold rating. The price target remains at $8, reflecting the need for Stagwell to deliver on its guidance to instill greater confidence in its long-term goals.