From Cazenova just now .... DYOR .... but quick :)

WPP - upgrade to OUTPERFORM - interims due 26 Aug which we expect to be strong, reflecting gd Q2 fig's already reported by peers. We see potential for EPS upgrades of up to 5%-10% N/T (combination of top line, margin & US$). L/T we expect EPS growth of up to 17%-18% pa before maturing at 11%-12% pa. Key risks are (1) further M&A (2) prem valuation (17.1x 06 EPS before any upgrade), representing a 31% prem to UK mkt & 33% to UK media sector. Despite this we still believe it has room to outperform. Our DCF valuation gives 760p, 28% upside from here.

really good set of numbers yesterday and strong forecast
this won't produce fizz and bang like an E&P oily, but i reckon it's a good sector in which to have exposure, and WPP is probably one of the best

have been out for a while, but just bought again - money marries mouth!

perhaps not a white-knuckle ride like a small oily, but i can only repeat post 110 and guide you to the charts on post 107

and spiffing numbers yet again ..... but bet none of you guys have bought in

with the bottom of the economic cycle now looking to be behind us (especially in usa), a stock of this nature and calibre makes a good addition to any balanced portfolio - but i would say that, wouldn't i!

Do you still think there is more mileage in this one, Cynic?
Goes ex-divi wed 1st Jun '11.
Chart looking toppy, though maybe good support on the 200 DMA?

while i would certainly like to sp crack through the 50 dma, it has equally found support on 25 dma line

that apart, much of the rest of the world is now emerging from recession and with the olympics also now coming up, advertising revenues should strengthen ...... WPP are (i think) the largest advertising company in the world and make a good counter-balance to BLNX ..... on the downside, the horribly weak and weakening US$ may negatively impact WPP's results

Thanks. Duly noted.

Nomura has reduced its full-year revenue assumptions for advertising and marketing group WPP as growth in April appears to have slowed slightly after a stronger first quarter.

The trading statement for the first four months of the year showed organic growth of 6.2% vs. 6.7% for Q1 [first quarter] 2011. This implies April growth was less than 5%, meaning there has been a downward slope since the start of the year, the broker said.

Combined with tougher comparatives ahead, Nomura now considers a sub-5% growth rate more likely. The organic growth forecast for the full year is cut from 6% to 4.7%. However, a buy rating and 1,000p target price are retained.

With WPP's good statement this week, take a look at Creston (CRE), it's been out of favour for some time but now turning good - that's the one well undervalued imo and more likely to get taken out unless rerating continues.

with good employment numbers from US, it's time to dust this one down as it will benefit from any actual or perceived upturn in US economy ...... it happens that sp is also challenging 200 dma northwards

don't say i didn't tell you - was 688 to buy and now 714 bid after just 4 days

Well done cynic.

WPP PLC ("WPP")

Kantar to acquire majority stake in Oasis Insights, an independent market research business in Pakistan


WPP announces that it has agreed to acquire, through the Kantar network, a majority stake in Oasis Insights (Private) Limited ("Oasis"), an insight and consultancy business based in Karachi, subject to regulatory approvals.

Founded in 1996 by Mr Moazzam Al Qadri, Oasis offers insight and consultancy services to clients across all business sectors. Oasis employs 105 people and clients include Engro Foods, Mobilink, PTC, Ufone and Unilever.

Oasis' revenues for the year ended 30 June 2011 were approximately PKR 254 million, with gross assets at the same date of approximately PKR 109 million.

This investment continues WPP's strategy of developing its services in fast-growing and important markets and sectors. Pakistan is one of the fastest-growing markets in the world, identified by Goldman Sachs as one of the Next 11 economies to watch. WPP businesses (including associates) in the Next 11 markets generate revenues of more than US $700million and employ more than 9000 people.

StockMarketWire.com
Marketing giant WPP Group said today Burson-Marsteller, its wholly-owned PR firm, has agreed to acquire a majority equity stake in Viestintätoimisto Pohjoisranta in Finland.

Pohjoisranta, based in Helsinki, has a team of more than 40 professionals and is one of Finland's largest communications agencies.

Pohjoisranta has been Burson-Marsteller's exclusive affiliate partner in Finland since 2006 and now joins the network as Pohjoisranta Burson-Marsteller. The company's clients include HP, Metso, SAP and Stora Enso.

Pohjoisranta's unaudited revenues for the year ended 31 December 2011 were approximately €5.1m, with gross assets as at the same date of approximately €1.8m.

This acquisition continues WPP's strategy of investing in important markets and sectors. WPP businesses in Scandinavia, including associates, generate revenues of over $500m and employ nearly 3000 people.

and it's an olympic year too ..... this has to be a sensible component of a balanced portfolio (ramp ramp!)

Note from Liberum:
WPP FY11 results showed a significant beat on margin guidance, as well as a beat on organic revenue growth, again highlighting the resilience of the business and the potential for margin progression. We will review our top end of the range consensus numbers (we have 78.6p adjusted EPS for FY12E PE) postpresentation but expect consensus to rise by 5% – 10%. Reiterate Buy, DCF-based fair value is 1000p.

A very good set of numbers: Adjusted EPS was 67.7p, in line with our 67.8p estimate but ahead of consensus at 65.6p. Organic revenue growth was 5.3% ahead of 5% guidance and 5.1% Liberum estimates and driven by the faster growing markets, which showed 10.5% like for like growth. The real positive surprise was on the margin, up 110bps to 14.3% ahead of Liberum’s 14% and guidance of 13.9% or more. It was particularly boosted by Western Continental Europe (up 180bps yoy) and the faster growing markets (up 90bps, and now at 15.4% margin, close to North America’s 15.5% level).

North American organic revenue growth – confident despite Q4. A few reasons why we are not concerned: (1) suspect this is a specific issue with their market research unit, which the company has already identified and said it is taking steps to rectify. This would explain why WPP’s US Q4 performance looks weaker than others (other agency groups do not have this) (2) the US in general is still showing good advertising growth (3) It is obviously not impacting group margin or revenue progression (US was up 80bps yoy for margin).

WPP upped the dividend by 38% yoy, far higher than expected, to 24.6p vs. Liberum 20.5p estimate and 21p consensus. WPP is now accelerating its target of moving the dividend to 40% of fully diluted earnings (33% in FY11E).

Revised forecasts. For FY12E, guiding to 4% organic revenue growth (we have 4.6%) and 14.8% margin (as we have), a 50bps yoy improvement, but this has to be seen as conservative given 2011′s big beat (we had forecasted a 80bps yoy margin improvement in 2012E). We will revise forecasts post presentation. Our 2012E adjusted EPS forecast of 78.6p adjusted EPS was 10% ahead of pre-results consensus.
Valuation. Our current DCF-based price target is 1000p. The shares trade at 10.4x FY12E PE, which looks very attractive given the margin beat and potential for further earnings expansion.

confess i banked a good profit here about a week ago - but bought back in this morning, and that too is now in the money

hands up all you naughties who haven't followed sir's advice on this one and go and stand in the corner facing the wall for 15 minutes while you contemplate your sins

Jefferies has upgraded its rating for the stock from 'hold' to 'buy'.

The broker said that an analysis of WPP's largest clients and their 2013 ad budgets "looks encouraging" and "with expectations low, we see upside risk".

long time since this one has been highlighted, but figures due this week - prob excellent - and sp just touching 50 dma so possible bounce anyway

a nice little run since i mentioned this company a few days ago :-)