WPP Group, Plc – ADS (WPPGY) is focused on new markets, new media and consumer insights. As WPP has a dominant market share in many areas, we believe it has the pricing power to improve margins and sustain future growth in profit.
WPP Group continues to be in a good position to benefit from the key industry trends. The TNS acquisition represents a major competitive advantage for its consumer insight business and the group. Its gross synergies from the acquisition in the fiscal year 2010 were approximately GBP60 million, versus original commitment of GBP52 million.
Encouraging results in fiscal year 2010 with a top-line increase of 7% and net earnings improvement of 28%, together with management’s guidance are all very positive. Thus, we maintain our Outperform recommendation on the ADS.
WPP GRP PLC (WPPGY): Free Stock Analysis Report
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