WPP shares fall as Goldman Sachs cuts estimates
Shares in WPP Group fell 7% yesterday following a cut in earnings estimates for several European media companies by investment bank Goldman Sachs.
LONDON (Brand Republic) - Shares in WPP Group fell 7% yesterday following a cut in earnings estimates for several European media companies by investment bank Goldman Sachs.
Goldman’s previous estimates for global advertising growth dropped from 5% for 2001 and 7% for 2002 to 3% for both years. It also slashed earnings estimates for BSkyB, Carlton Communications, Granada, Mediaset, RTL, United Business Media and VNU.
Shares in WPP recovered this morning to 756p, an increase of 6.5% from yesterday’s slip. However, BSkyB and Carlton dropped further by 2.15% and 2.3% respectively, but rival Granada was up by 0.27%.
Goldman said WPP and BSkyB remained its favoured stocks and that it had cut the estimates for media companies to “create a sustainable base from which to value stocks”. It added that 2001 was shaping up to be a disappointing year and that investors should be focusing on longer-term issues.
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