WPP Group has been downgraded from "Buy" to "Hold" by Citigroup Global Markets. Even though Citi does not think WPP shares are "especially expensive," it believes the current valuation is not
"sufficiently compelling to support a 'Buy' rating."
Citi cited the seasonality of sector performance for companies like WPP, noting that agency groups typically see the bulk of their
relative share price performance between October and the release of full-year results in Q1. "Revenues and profits are concentrated in Q4, and especially November/December," says Citi. Despite the
downgrade, the investment bank describes WPP as the "best positioned agency" in its peer group.