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UBS keeps 'Sell' on WPP despite better Q1; sees limited near-term recovery catalysts

Market News
29 Apr 2026
Proactive Investors
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Bearish
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UBS maintains a 'Sell' rating on WPP PLC despite the advertising group's better-than-expected first-quarter results, with organic growth at -6.7% beating consensus. The broker notes that the near-term recovery lacks clear catalysts and expects Q2 trends to remain similar to Q1, with ongoing challenges from net new business. UBS values WPP at 5.1 times revised 2026 earnings and a 5.9% dividend yield but sees limited upside, keeping the 12-month price target at 210p, implying an 18.8% downside from the current price. Sentiment might improve at the half-year results when the CEO is expected to provide more details on the Elevate28 plan and potential asset disposals.

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