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.