Wells Fargo analyst Steven Cahall downgraded Stagwell to Equal Weight from Overweight with a price target of $8, down from $9. The firm downgraded the advertising agencies in anticipation of a late cycle downturn. Industry-wide client pressure, including more deferrals and cancellations, as well as softness in tech and project-based work warrants reduced multiples for stocks in the sector, the analyst tells investors in a research note.
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