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WPP PLC ADR WPP

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

WPP Has Become Relevant Again; Posted Strong Q2 Results; Shares Undervalued

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

WPP’s first-half 2021 results easily beat expectations on the top and bottom lines as economic recovery and the firm’s investments in enhancing its digital offerings drove organic revenue growth and margin expansion. While WPP will face more account reviews this year, similar to its peers, we believe it is well positioned to continue gaining net account wins that began in 2020 and continued through the first six months of this year. Management increased its organic growth guidance for 2021, but we are not making significant changes to our model given the near-term uncertainty brought about by the Delta variant. We are maintaining our GBX 1,340 fair value estimate and continue to view this narrow-moat name with a dividend yield of 2.6% as attractive.

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Company Profile

Business Description

Headquartered in the U.K., WPP is the world’s largest ad holding company, based on annual revenues. WPP's services, which include traditional and digital advertising, public relations, and consulting, are provided worldwide, with over 70% of its revenue coming from more developed regions such as the North America, U.K., and Western Europe.

Contact
18 Upper Ground, Sea Containers
London, SE1 9GL, United Kingdom
T +44 2072824600
Sector Communication Services
Industry Advertising Agencies
Most Recent Earnings Jun 30, 2008
Fiscal Year End Dec 31, 2021
Stock Type
Employees 102,822

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