Bank of America has adjusted its outlook on WPP (WPP, Financial) by reducing the price target to $37 from $38, while maintaining an Underperform rating. The decision reflects concerns over the slowest growth observed in four years within the advertising sector. Although no significant reductions in advertising expenditure have been identified, the firm anticipates a deceleration in organic sales growth by 1-2 percentage points in 2026, attributed to a slowdown in GDP growth.
This forecast of reduced growth is compounded by expected negative impacts from foreign exchange fluctuations. As a result, the firm's earnings per share (EPS) projections for 2026 have been lowered by 2% to 9%. These revisions highlight ongoing challenges faced by WPP (WPP, Financial) amidst macroeconomic pressures.
