WPP downgraded to Underweight from Equal Weight at Barclays

Barclays downgraded WPP (WPP) to Underweight from Equal Weight with a price target of 550 GBp, down from 700 GBp. The firm came away from the Cannes ad festival last week more bearish than before on the advertising agencies. Artificial intelligence should result in operating performance “remaining contrasted and in the current low organic growth continuing,” the analyst tells investors in a research note. Barclays says the organic growth rate of the top six holdings agencies has been lackluster since 2017 and AI “will profoundly and irrevocably transform the industry.” While the agencies “will adapt, survive and ultimately thrive, it will take time, money and good execution,” contends Barclays.