Agency price targets raised as talk of ad recovery grows

LONDON - WPP Group, Havas and Publicis Groupe have all had their share price targets raised by the finance company Credit Suisse First Boston, as predictions of an advertising recovery become more widespread.

CSFB has raised its target price on WPP to 580p from 500p, with a "neutral" rating. Shares in the company were trading down by 0.5% this morning at 542.25p, a fall of 2.5p.

WPP Group chief executive Sir Martin Sorrell has frequently said that 2004 will see the end of the advertising downturn, because of the boost given to the industry by the European Football Championship, the Athens Olympics and the US Presidential elections.

The target price on French group Havas was raised from €4.10 to €4.20, but its rating was lowered from "neutral" to "underperform" after last week's disappointing first-half results.

Shares in Havas, traded on the Paris Bourse, were down by 0.6% this morning at €4.80.

Publicis had its target raised from €21.50 to €23.50 and was kept at a rating of "underperform". Shares in the company were trading at €26.13 this morning, a fall of 0.7% on yesterday's closing price. Last week, the French advertising giant, headed by Maurice Levy, said that it would be meeting ambitious profit margin targets in 2004.

Frederik Kooij, an analyst at CFSB, said in a note: "Macro sentiment should remain the short-term driver but we believe earnings upgrades will be required to sustain any further outperformance."

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