WPP Faces 5% Revenue Decline and 70bp Margin Hit After Price Target Cut
Morgan Stanley cut WPP’s price target to GBP290 from GBP365 and lowered its 2026 EPS forecast by about 10%, predicting a 5% organic revenue decline. It expects profit margins to fall by roughly 70 basis points in 2026, improve in 2027 and reach flat growth by Q3 of that year.
1. Analyst Reduces Target and Forecasts
In early March Morgan Stanley lowered WPP’s price target from GBP365 to GBP290 and trimmed EPS forecasts for 2026–28 by 8%–14%, reflecting a more cautious outlook on advertising spending.
2. 2026-27 Growth and Margin Outlook
The bank projects a 5% organic revenue decline in 2026 accompanied by a 70 basis point margin contraction, with margins expected to recover and achieve flat organic growth by the third quarter of 2027.
3. Strategic Focus for Recovery
CEO Cindy Rose outlined a refreshed strategy emphasizing innovation, collaboration and a revamped brand identity aimed at boosting efficiency and supporting a recovery in client spending.