WPP, Publicis Stocks Continue Slide: Analyst Urged Investors To Exit The Sector

Both Omnicom and Interpublic Group stocks recovered some of their losses in trading on the New York Stock Exchange on Tuesday after declining Monday when Pivotal Research Senior Analyst Brian Wieser urged investors to exit the advertising sector. Both Publicis Groupe and WPP suffered a second day of losses on the Euronext and London exchanges, respectively.

Wieser put out a note Monday that downgraded his ratings on all four of Adland’s biggest holding companies -- including “sell” recommendations for WPP, Omnicom and Publicis Groupe, and a “hold” rating for IPG.

Wieser’s advice was based on what he termed the “emerging concerns among marketers around different forms of agency rebates in the United States.”  



On Monday the Dow was down 0.45% while Omnicom dropped 1.53%. On Tuesday the Dow rebounded, up .33%, and Omnicom ended with a gain on the NYSE, up 0.68%.

IPG also stemmed the bleeding on Tuesday, posting a 0.23% gain after dropping 0.92% on the NYSE on Monday.

But Publicis Groupe fell another point and a half on Tuesday on the Euronext, after dropping 0.85% the prior day. Havas, which was not mentioned in Wieser’s report, also fell for a second day by 1.10% -- also on Euronext.

WPP fell for the second straight day on Tuesday on the London exchange, dropping 0.31% after sliding 0.81% on Monday. In the U.S. where WPP American Depository Receipts trade on the NASDAQ exchange, the news was better. After falling 0.69% on Monday, the ADRs rose 0.75% on Tuesday.

MDC Partners and Dentsu, neither of which were mentioned in Wieser’s note, posted gains both days on the NASDAQ and Tokyo exchanges respectively. 

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