Stagwell downgraded at Stephens with revenue still pressured by tech pullbacks

As previously reported, Stephens analyst Nicholas Zangler downgraded Stagwell to Equal Weight from Overweight with a price target of $8, down from $11, after the company saw organic growth worsen sequentially in Q2 and management cut its FY23 guidance. Although the firm believes the secular tailwinds to digital transformation “remain intact,” it is reducing its FY23 net revenue estimate and steps to the sideline as it awaits the normalization of demand from tech/banking customers, execution on several cost savings initiatives and further visibility into the advocacy business.