WPP Price (LON: WPP) Target Cut In Earnings Preview

WPP plc (LON:WPP) has seen its price target lowered by Barclays, reflecting ongoing concerns about the advertising and public relations giant's performance. The reduction, part of a broader Q3 earnings preview for European media companies, underscores existing pressures on the stock.

The recent announcement saw Barclays reduce its price target for WPP shares to 368 GBp, down from a previous 395 GBp, while maintaining an ‘Underweight' rating. This adjustment arrives amidst a challenging year for WPP, with the stock already down -55.71% year-to-date, signaling significant investor apprehension.

Analyst sentiment toward WPP has been increasingly cautious throughout 2025. Barclays had previously downgraded WPP on June 25th from ‘Equalweight' to ‘Underweight,' significantly slashing the price target from 700 GBp to 550 GBp. This downgrade was largely attributed to strategic uncertainties arising from management transitions within the company and the potential risk of client departures. The analyst firm highlighted the historical underperformance of media stocks during CEO transitions, estimating approximately a 10% dip. Furthermore, WPP was actively defending $1.4 billion in media billings, with prospective losses potentially impacting the company's organic growth trajectory.

Further compounding the negative outlook, on July 10th, Barclays analyst Julien Roch further diminished the price target to 400 GBp from the already reduced 550 GBp, reaffirming the ‘Underweight' rating. This revision reflected an even more conservative perspective on WPP's ability to navigate prevailing market headwinds.

Earlier in the year, on February 28th, Barclays downgraded WPP from ‘Overweight' to ‘Equalweight,' adjusting the price target to £7.80 from £9.75. At the time, analysts anticipated a weak first quarter, mirroring the performance of the fourth quarter, and projected a negative second quarter. The arrival of a new chairman at WPP was also cited as a potential influence on the company's performance. Kepler Capital Markets also joined the chorus of revised ratings, downgrading WPP from ‘Strong-Buy' to ‘Hold' on July 31st.

The series of downgrades and target price reductions have collectively fostered a bearish sentiment surrounding WPP. Markets are closely monitoring the company's strategic responses to these challenges, especially concerning management transitions and client retention efforts. The succession of downward revisions suggests that analysts anticipate continued difficulties for WPP in the near term.

The recent price target reduction by Barclays serves as a stark reminder of the challenges WPP faces, and the market's sensitivity to management changes and client retention concerns will continue to impact investor sentiment.