WPP hit by downgrade from JP Morgan

13th Dec 2023 09:13

(Sharecast News) - Advertising and media group WPP's share price was being weighed down on Wednesday with a ratings cut by JP Morgan from 'overweight' to 'neutral'.

The bank slashed its target price for the stock from 1,170p to just 850p.

As part of its 2024 outlook for the listed media sector, JP Morgan said it was maintaining a "defensive bias" amid a slowing macro environment.

"The outlook for 2024 is very similar to that 12 months ago. Economies, consumers and earnings were resilient in 2023 and the forecast economic slowdown has been rolled into 2024," the bank said.

"We maintain a defensive bias as we start the year as we expect higher inflation and interest rates to finally catch up with consumers and earnings."

JP Morgan said it was downgrading WPP due to slowing US macro conditions and share losses.

WPP reported in October that group like-for-like revenues were up 1.2% across the first nine months of 2023, as growth in the UK, Western and Continental Europe, and Rest of World divisions was offset a 2.2% LFL slump in North America.

The stock was down 1% at 729.8p by 0939 GMT.