Markets React to WPP’s Bearish Forecast

26 June 2002

Monday’s announcement by WPP Group that it expects to undershoot its profit margins in the current year [WAMN: 25-Jun-02] triggered the inevitable market reaction, the group’s share yo-yoing throughout Tuesday.

Merrill Lynch also downgraded its price target from £8.00 ($12.19; €12.31) to £7.76 and its earnings forecast by one per cent to £4.18 billion.

Shares which stood at £5.54 at Monday’s close, soared to £5.85 before closing Tuesday at £5.80. But overnight, jitters set in among the entrail-rakers and shares dived again this morning (Wednesday), at 08.15 BST languishing at £5.42.

Data sourced from: BrandRepublic (UK); additional content by WARC staff