Berenberg Sees WPP Shares as a Buy, Pushing Back Against Goldman’s Sell Rating

Berenberg initiated coverage of WPP (LON:WPP) with a Buy rating and a 405 pence price target, striking a contrasting tone to Goldman Sachs, which launched coverage of the advertising giant with a Sell just last week.

The German bank is among the more constructive voices on the advertising holding company sector, arguing that a 20% to 50% de-rating across the group “offers significant upside potential and attractive valuations” with double-digit free cash flow yields.

Berenberg acknowledged that the industry faces “long-standing headwinds” from in-housing, rising competition, and AI, but said the agencies are “adapting rather than fading away.”

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The initiation puts Berenberg at odds with Goldman Sachs, whose analyst Adam Berlin last week assigned WPP a Sell rating with a 240 pence target, citing limited visibility on a return to healthy organic growth under the company’s current asset mix.

Goldman said it would turn more positive if asset disposals led to improved growth.

Meanwhile, Rothschild & Co Redburn re-initiated WPP with a Buy and a 435 pence target in late May, the most bullish price target among the three firms, projecting organic growth, improved margin, and better cash conversion in 2027 and 2028, and seeing 60% upside from current levels.

WPP shares closed up 5.5% on Tuesday following the Berenberg note. However, the stock is down 19.3% year-to-date and has lost almost 50% in the last 12 months.