LONDON (Brand Republic) - Shares in WPP Group have fallen following a downgrade in stance and estimates by Merrill Lynch.
Shares in WPP fell 14p from yesterday鈥檚 price of 725p before moving slightly up to 713.5p.
The US broker is believed to have cut its rating for the network from 鈥渁ccumulate鈥 to 鈥渘eutral鈥 and reduced its headline pre-tax profit forecast for the current year by 7% to £547m from £587m and its overall revenue forecast for the group to £4.08bn, down from £4.19bn.
It is understood that the broker is concerned about the lack of visibility of advertising and marketing services revenues and a downturn in both markets.
WPP is not the only company in the marketing services sector to suffer at Merrill鈥檚 hands. It has also downgraded the Carat-owning Aegis Group from 鈥渁ccumulate鈥 to 鈥渘eutral鈥 and Bates-owning Cordiant Communications Group from 鈥渂uy鈥 to 鈥渁ccumulate鈥.