WPP Earnings: Pressure From Account Losses and Creativity Weakness Likely to Ease in Late 2024

WPP posted fourth-quarter results mostly in line with expectations. However, its 2024 organic growth guidance remained well below the outlook provided by its peers as account losses will pressure the firm mainly in the first half. Investment in this name still requires patience, as WPP has been late in integrating the technology and data behind its media and creativity. However, we do not think WPP is too far behind its peers. We still believe that with the largest media agency, GroupM, and the most advertising revenue in the world, WPP can turn around its creativity business and strengthen its organic net revenue growth in the second half of 2024. We are maintaining our GBX 1,250 fair value estimate of WPP.