JPM says ad agencies 'vital' despite Meta's AI, prefers Publicis over WPP

Publicis Groupe

11/06/2025 08:20

** J.P.Morgan says large advertisers still need agencies despite Meta's META.O AI announcements, not expecting its AI-driven tools to replace them

** "Larger advertisers will need agencies more than ever in an AI world," the broker says, highlighting Publicis's data capabilities

** JPM reiterates "neutral" rating on Britain's WPP WPP.L and "overweight" on French rival Publicis PUBP.PA

** The broker expects AI developments to drive unprecedented account consolidation, with Publicis set to benefit the most

** It raises Publicis's 2026 growth forecast to 5.2% from 5%, while lowering WPP's to 1% from 3% and cutting its EPS estimate by 7%

** JPM cuts WPP's PT by 11% to 650p, citing AI challenges and weak business momentum

** It notes that WPP could be vulnerable to external interest in the coming months, which could limit potential downside

 (Reporting by Leo Marchandon)

 ((Leo.marchandon@thomsonreuters.com))