Martin Sorrell’s S4 Capital in Talks With MSQ Partners About Possible Tie-Up

Written by Emily J. Thompson, Senior Investment Analyst

STGW+1.43%

WPP+1.3%

Source: WSJ

Updated: 08-11

4mins

Source: WSJ

Proposal for Merger: S4 Capital has received a proposal from MSQ Partners regarding a potential merger and is currently in preliminary discussions.
Uncertainty of Transaction: S4 Capital emphasized that there is no certainty that a transaction will occur as the talks are still in early stages.

STGW.O

$5.670-12.635%Past 6 months

Line

Candle

YTD

Intellectia

Analyst Views on STGW

Wall Street analysts forecast STGW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STGW is 8.56 USD with a low forecast of 6.36 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

6 Analyst Rating

4 Buy

2 Hold

0 Sell

Moderate Buy

Current: 5.590

Low

6.36

Averages

8.56

High

10.00

Current: 5.590

Low

6.36

Averages

8.56

High

10.00

Wells Fargo

Overweight

downgrade

$9 -> $8

2025-05-12

Reason

Wells Fargo

Price Target

$9 -> $8

2025-05-12

downgrade

Overweight

Reason

Wells Fargo lowered the firm's price target on Stagwell to $8 from $9 and keeps an Overweight rating on the shares. The firm thinks the company's Q1 results were better than the initial reaction, with solid underlying trends ex a media account. Execution is key, but Wells does believe in an acceleration from here for a rerating.

Benchmark

Buy

Hold

downgrade

$9.50

2025-05-09

Reason

Benchmark

Price Target

$9.50

2025-05-09

downgrade

Buy

Hold

Reason

Benchmark downgraded Stagwell to Hold from Buy and removed the firm's prior $9.50 price target. Removal of quarterly organic net revenue growth disclosure and a move to annual is limiting the firm's ability to track progression to guided 8% net revenue growth this year and may suggest more reliance on M&A to achieve this target, the analyst tells investors. The firm also cites "inconsistent" free cash flow growth in a weakening macro environment and limited next twelve month visibility and share catalysts.

Needham

Laura Martin

Strong Buy

Reiterates

2025-04-03

Reason

Needham

Laura Martin

Price Target

2025-04-03

Reiterates

Strong Buy

Reason

Rosenblatt

Barton Crockett

Strong Buy

Maintains

$10

2025-04-03

Reason

Rosenblatt

Barton Crockett

Price Target

$10

2025-04-03

Maintains

Strong Buy

Reason

See All Ratings

About STGW

Stagwell Inc. is a digital-first marketing company. Its segments include Integrated Agencies Network, Brand Performance Network (BPN) and the Communications Network. The Integrated Agencies Network segment offers an array of complementary services spanning its core capabilities of Digital Transformation, Performance Media & Data, Consumer Insights & Strategy, Stagwell Marketing Cloud Group and Creativity & Communications. The BPN segment includes a unified media and data management structure with omnichannel media placement, creative media consulting, influencer and business-to-business marketing capabilities. BPN’s brands provide media solutions, such as audience analysis, media planning, and buying. The Communications Network segment provides advocacy, strategic corporate communications, investor relations, public relations, online fundraising and other services to both corporations and political and advocacy organizations and includes Allison, SKDK, Targeted Victory, and Consulum.

About the author

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Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.