Goldman Sachs upgrades WPP to ‘buy’

Goldman Sachs upgraded WPP on Thursday to ‘buy’ from ‘neutral’ and hiked the price target to 1,158p from 920p as it expects the shares to outperform this year as several headwinds begin to unwind/ease.

The bank also said that broader structural trends remain supportive of the industry’s growth outlook.

"We see upside to consensus numbers on both organic growth and margins as a result, and also see optionality from portfolio optimisation and capital allocation upside," it said.

GS said the share price underperformance over the last year - down 22% versus global peers flat on average - offers a good entry point.