WPP’s Leadership Transition and Market Uncertainties Lead to Hold Rating

Goldman Sachs analyst Lisa Yang has maintained their neutral stance on WPP stock, giving a Hold rating today.

Lisa Yang’s rating is based on a combination of factors including the recent announcement of WPP’s CEO Mark Read stepping down at the end of 2025. During his tenure, Mr. Read made significant strides in simplifying the business structure and reducing net debt, which are positive developments for the company. However, the uncertainty surrounding the leadership transition and the search for a new CEO introduces potential risks that may impact the company’s future performance.
Additionally, the Hold rating reflects concerns about various external factors that could affect WPP’s stock performance. These include the macroeconomic environment, execution on competitive improvements, and the pace of recovery in key markets like China. Other considerations include the impact of generative AI on the advertising industry, potential changes in client fee structures, and the outcome of strategic decisions such as the potential sale of WPP’s Kantar stake. These uncertainties contribute to the cautious outlook and the decision to maintain a Neutral stance with a target price of 649p.

In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a £6.50 price target.

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