Stagwell weakness in sympathy with S4 ‘well overdone,’ says Benchmark

Benchmark notes that Stagwell shares were down about 14% yesterday, which the firm believes was in sympathy with S4 Global’s disappointing earnings results. However, the firm’s discussion with Stagwell management post their attendance at Benchmark’s TMT conference last week pointed to confidence in their ability to achieve both 2023 revenue and EBITDA targets, says the analyst, who would be buyer of the shares on weakness that was “well overdone.” The firm reiterates a Buy rating and $9 price target on Stagwell.