Westhouse lifts WPP's target price citing 'encouraging outlook'

LONDON (ShareCast) - Advertising and public relations group WPP (LSE: WPP.L - news) was handed a boost by Westhouse Research, after the brokerage reiterated its 'add' rating on the stock and lifted its target price. Earlier this month, the FTSE 100 group reported a 12% increase in pre-tax profit to £1.45bn, while revenues rose 4.6% to £11.5bn and diluted earnings per share climbed 12.6% on a constant currency basis.

Westhouse said the results were slightly ahead of expectations, prompting it to raise its earnings per share estimates for 2015 and 2016 by 6% and 8% respectively, citing a positive outlook.

"Outlook comments were encouraging, with solid medium-term organic revenue growth set to be supplemented by complementary acquisitions, improved profitability and share buy-backs," the brokerage said in a note on Friday.

"We believe the group's stock offers compelling total return potential." WPP shares were up 0.51% to 1,586.00p at 12:35 on Friday.