Stock Price & Analysis

Based on the analysis of WPP's recent performance and news, it is recommended to hold the stock as the company faces mixed signals from both technical and fundamental perspectives. The stock is currently oversold, but the bearish momentum and recent client loss suggest caution.

Price Prediction for WPP Stock in 2025

Based on current trends and recent developments, here is a concise price prediction for WPP stock in 2025:

1. Price Prediction: WPP stock is expected to trade between $35 and $40 by the end of 2025.
2. Reasoning: The stock faces headwinds from losing major clients like Coca-Cola's North American media account and revenue declines, but restructuring efforts like the Kantar sale may provide some stability.
3. Current Price: As of March 24, 2025, WPP stock closed at $39.64, reflecting ongoing market concerns about its growth prospects.

The S1 support level for WPP Stock is $39.48 ,The R1 resistant level for WPP Stock is $41.12.

As of the end of day on 2025-03-24, the price of WPP Stock was $39.64.

The target price for WPP Stock according to analyst rating is 42.00, with the highest price target at 42.00 and the lowest at 42.00. Analysts have a Moderate Sell rating on WPP Stock overall.

The market cap of WPP is $42.8B.

Analysis and Insights

WPP appears overvalued based on its current valuation metrics and recent business developments.

1. Valuation Metrics:

   • WPP's P/E ratio of 23.5x is higher than the industry average of 18.5x, indicating a premium valuation.
   • The EV/EBITDA ratio of 11.8x is also above the industry average of 9.5x, suggesting elevated valuations.
   • The P/S ratio of 1.2x and P/B ratio of 2.1x further highlight its premium pricing compared to peers.

2. Recent Client Loss:

   • WPP lost Coca-Cola's $700M North American media account to Publicis, which could impact its revenue and profitability.
   • While WPP retains Coca-Cola's global marketing partnership, the loss underscores competitive pressures in the advertising sector.

3. Kantar Sale Plans:

   • WPP and Bain are planning to break up and sell Kantar, which may raise short-term funds but could also signal financial pressures.

4. Technical Analysis:

   • WPP's stock is trading below its 50-day and 200-day moving averages, indicating bearish momentum.
   • The RSI of 31 suggests oversold conditions, but the MACD remains negative, signaling continued downward pressure.

Conclusion:

WPP's elevated valuation multiples, combined with the loss of a major client and planned asset disposals, suggest the stock is overvalued at current levels. While the dividend yield of 3.5% is attractive, it may not justify the risks associated with its premium valuation and competitive challenges.

WPP plc is a United Kingdom-based creative transformation company. The Company provides marketing communications services that help brands grow their businesses. Its segments include Global Integrated Agencies, Public Relations and Specialist Agencies. The Global Integrated Agencies segment includes creative agencies and media agencies. Its creative agencies provide advertising campaigns, experiences, e-commerce strategies and platforms, technology services such as CRM implementation, and more. The Company's media agencies connect brands with consumers - planning, buying and activating the distribution of creative content across the full range of media channels including digital display, search, social, television, print and billboards. The Public Relations segment helps clients communicate with their stakeholders, build reputation and manage risk. The Company operates in various countries, including United States, United Kingdom, Germany, Greater China, India, Brazil and Australia.

WPP stock is predicted to reach $45 by 2030, driven by potential recovery and industry growth despite current challenges. The stock faces short-term pressures from losing major clients like Coca-Cola and internal restructuring efforts. However, strategic moves and industry trends could support long-term recovery.

WPP has a total of 114173 employees.