Sell Rating on WPP Due to CEO Departure, Client Losses, and Lagging Growth

Bank of America Securities analyst Adrien Hilaire maintained a Sell rating on WPP (WPP – Research Report) yesterday and set a price target of p560.00.

Adrien Hilaire has given his Sell rating due to a combination of factors impacting WPP’s current and future performance. The announcement of CEO Mark Read’s departure in December 2025 has created uncertainty, as it raises concerns about potential negative developments in the near term. Although Read has implemented significant changes, such as the disposal of a stake in Kantar and the launch of WPP Open, the company has faced challenges with losing major client relationships and risks further losses in 2025.
Additionally, WPP’s organic sales growth has lagged behind its closest competitor, Publicis, which has averaged higher growth rates. The lack of reiteration of the 2025 guidance in the recent press release suggests a potential downward revision, especially given the soft performance in the first half of the year. The upcoming transition to a new CEO and the need for a strategic overhaul may take time to show results, while the company may need to consider a margin reset and balance sheet adjustments to regain competitiveness. These factors collectively contribute to the Sell rating on WPP’s stock.

WPP’s price has also changed moderately for the past six months – from p891.600 to p543.400, which is a -39.05% drop .