Skip to Content
Stock Analyst Update

CEO Exit Has Little Impact On WPP's Prospects

Martin Sorrell's departure may hurt WPP's relationship with clients short term, but we think such an impact will be minimal.


To our surprise, while the CEO of  WPP (WPP), Martin Sorrell, initially disputed the improper use of funds and personal misconduct allegations, the firm stated on Saturday that Sorrell is resigning, albeit he continues to deny the allegations. While Sorrell's departure may hurt WPP's relationship with clients in the short term, we think such an impact will be minimal given that Sorrell has not been as instrumental in winning new businesses as he was years ago. In our view, the firm’s narrow moat rating remains intact as WPP’s brand equity and the strong reputations of its ad agencies are based on the quality of services the firm continues to provide for its clients. This news does not alter our expectations of no organic growth for this year, which we think will be followed by 1% growth in 2019. We are maintaining our GBX 1,500 fair value estimate for this best idea name.

Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.

Ali Mogharabi does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.