The WPP share price is the best performer in the FTSE 100 after the firm published strong quarterly results. The stock jumped by more than 3.32%, pushing it to 970p. That jump brought its year-to-date performance to more than 25%. It has a market capitalization of more than 11 billion pounds and is one of the most active stocks in London.
WPP is the world’s biggest advertising group in the world. It has operations around the world and is well-known brands like GroupM, Mindshare, Mediacom, and WaveMaker. The firm operates in areas like integrated networks, media, data & insight, public relations, brand consulting, production, and health & wellness.
WPP business has rebounded as companies boost their advertising spending. In a note today, the firm said that it made more than 6.1 billion pounds in the first half of the year. That was a 16% increase from the same period in 2020. Most of this performance was because of the firm’s digital media sales.
Also, the firm recorded strong recovery in all geographical zones. As a result, the firm boosted its dividend and bought back shares worth more than 248 million pounds in the period.
So, what next for the WPP share price? Fundamentally, the business is expected to do well in the second half of the year as companies increase their spending. Furthermore, competition is rising and the unemployment rate is falling in key markets.
As such, analysts are optimistic about the WPP stock. According to Marketbeat, the average expectation is that the stock will rise to 1,040p. This is substantially higher than where it is today. Some of the most optimistic analysts are from UBS, JP Morgan, Numis, and Goldman Sachs. They all expect that the shares will rise above 1,100p.
WPP share price forecast
The daily chart shows that WPP shares have been in an overall bullish trend in the past few weeks. The stock has jumped by more than 115% from the lowest level in 2020. However, the momentum has waned recently, with the shares falling by about 5% from its highest level this year. It is also along the 25-day and 50-day moving averages. Also, it has formed a rounded top pattern, which is usually a bearish thing.
Therefore, the outlook for the stock is relatively bearish for now. If this happens, the next key level to watch will be 800p. This view will be cancelled if it moves above the YTD high of 1,025p.
My previous WPP outlook in March called for the shares to rise to 1,000p.