Merrill Lynch has said that it expects global advertising giant, WPP to grow by up to 4% this year, as strong underlying business momentum is spurred on by a general recovery and key boost from the Olympics.
The update from Merrill Lynch, which was issued as a result of WPP announcing its half year results last Friday said, its forecast of 3.2% organic global growth for 2005 is much more cautious as a result of rising interest rates in the US, joined with increasing energy prices.
During the first half of 2004 the advertising and media recovery has broadened, said Merrill Lynch and is now more or less in line with marketing services i.e. public relations and healthcare. While, Europe continues to pick up and continues in the recovery phase, conditions in the UK remain ‘tough’.
Although steady growth is expected for WPP, Merrill Lynch has said that poor market sentiment and links to the acquisition of American advertising agency, Grey Global (see WPP Considering £500 Million Rights To Buy Grey), could hold back the group’s performance in near term.
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