WPP shares this afternoon were trading at 409.5p, up 1.9%, but they still have some way to go before they hit the group's five-year low of 200p in late 1998.
In a research note, the Banc of America said it raised WPP to "market performer" from "underperform" with a price target of 450p. At the same time, the bank began coverage of French advertising group Havas with a "sell" rating. This morning, Havas reported a 9% fall in earnings before interest, tax and exceptional items to €116m (£73m) for the first half of the year, in line with the company's expectations.
Last week, investment bank UBS Warburg said it had downgraded shares in WPP, which contributed to a 4% fall in the group's share price.
The bank said that although there were tentative signs of a global advertising recovery, it would take longer for ad firms to see a rebound.
In its research note, UBS Warburg said: "We would expect advertising agencies to lag any global advertising recovery by at least six months, given their high exposure to fee-based revenues."
Last month, WPP suffered a string of downgrades. The credit agency Moody's switched WPP's debt rating from "stable" to "negative", owing to this year's performance and future uncertainty, and ratings agency Standard & Poor's and investment banks Credit Suisse First Boston, Merrill Lynch and Morgan Stanley all cut their outlook and targets for the advertising giant.
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