In major news on UK stocks, shares of the FTSE 100-listed company WPP PLC (GB:WPP) rallied over 3% after the company announced its partnership with Alphabet’s (NASDAQ:GOOG) Google Cloud. The partnership will integrate Google’s Gemini models with WPP’s own artificial intelligence (AI) operating system, WPP Open, to enhance the marketing solutions offered to WPP clients.
WPP is the world’s largest advertising company, offering services like advertising, public relations, technology, communications, and more. WPP’s AI tool, WPP Open, has already gained solid adoption in the industry and is used widely by several brands, including Nestle (NSRGY) and Coca-Cola (KO).
More About the Google-WPP Partnership
The Google-WPP partnership will combine Google Cloud’s expertise in AI tools with WPP’s stronghold on advertising data, resulting in new benchmarks in marketing campaigns. Additionally, with the help of Google’s technology, WPP will gain the capability to generate brand and product-specific content, forecast content effectiveness, and optimize campaigns.
During the first phase, the partnership will focus on boosting creativity, improving content optimization, streamlining video creation with AI, and refining product image quality.
What is the Price Target for WPP?
In the last 12 months, WPP stock has lost 17% of its value, reflecting the challenges faced due to a slowdown in the global advertising industry. However, the company is optimistic about its growth prospects in 2024, fuelled by major events such as the U.S. elections, the Olympics, and the Super Bowl. The company anticipates that its 2024 revenue, excluding pass-through costs, will either remain flat or achieve a modest increase of 1%.
On TipRanks, WPP stock has received a Hold consensus rating, supported by five Buy, five Hold, and two Sell recommendations. The WPP share price target is 873.18p, which indicates 13% upside from the current level.
