Stagwell initiated with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Benjamin Swinburne initiated coverage of Stagwell with an Equal Weight rating and $9 price target. The shares trade at a “healthy discount” to peers and in the context of the company’s 10%-12% long-term revenue growth guidance, the analyst tells investors in a research note. As such, the firm sees a positive risk/reward skew. However, its neutral rating reflects broader advertising market caution, concerns over estimate achievability, and Stagwell’s limited operating history.