Analyst Note| Ali Mogharabi |
WPP reported first-quarter revenue well above expectations, with growth across all businesses and regions. We continue to believe that the resurgence in brand advertising will help drive organic growth for WPP and its peers, while WPP’s investments in data and technology will continue to attract and expand relationships with clients like Mars, JDE Peet’s, and Sky in the first quarter along with Coca-Cola at the end of 2021. We did not make any changes to our model and are maintaining our GBX 1,340/$90 fair value estimate. We continue to view WPP as one of the most attractive stocks among the ad holding firms, as the shares remain in 4-star territory.