Sir Martin Sorrell must be smiling in light of a MarketWatch report that states in London, WPP’s shares have advanced 3.9% ahead of its earnings call, in turn spurring Deutsche Bank to upgrade the umbrella company’s status from hold to buy.
A broker tells the trade, “Even if revenues remain under pressure, a radically leaner cost base means management can now paint a more positive view on margin prospects for next year.” Guess the leaner and meaner WPP explains Sorrell’s job cut forecast this year.
Update: What goes up must come down we suppose because even though WPP has seen its stock rise, Sorrell’s company has also watched profits plummet by 47% in the first half of ’09 according to the Guardian. July results though have been “less worse” according to WPP so don’t put away those party hats and streamers just yet.