Analyst Note
| Ali Mogharabi |On Nov. 8, Coca-Cola named WPP as its global marketing network partner. The ad holding company will manage the entire global media, creative, and data responsibilities and output for the advertising and marketing of all of Coca-Cola’s brands in nearly all markets. WPP was competing against Publicis, IPG, and Dentsu for this prestigious account. This win supports our strong organic growth assumptions for WPP in 2022 and 2023. The Coca-Cola pitch is likely one of the largest in a few years, as according to AdAge Datacenter, Coca-Cola is the 17th-biggest ad spender in the world. We are maintaining our GBX 1,340/$92, EUR 67, and $35 fair value estimates for WPP, Publicis, and IPG. Of these, we think 4-star WPP is the most attractive stock.