WPPGY Acquires Stake in Enprecis - Analyst Blog


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Advertising titan WPP Group Plc. ( WPPGY ), through its wholly-owned subsidiary Kantar, recently concluded investment of roughly $1.2 million in a Washington-based company, Enprecis.

The transaction involves the acquisition of a minority stake in Enprecis. The latter's client base is strong, including major automotive manufacturers across the world. Enprecis held over $0.686 million in gross assets ending 2011. Enprecis will complement the automotive practices carried out in TNS, a global market research unit of Kantar.

Meanwhile, WPP Digital, a wholly-owned subsidiary of WPPGY, invested $7 million in Dolphin Software Ltd. for a minority stake. Dolphin Software operates a shopping site and does business as mySupermarket.

The company's global strategic communications consultancy firm, Penn Schoen Berland, acquired First Movies International, a research-based strategic consultancy firm.

WPPGY's acquisitions and investments are all aimed at expanding the company's operations in the fast-growing emerging markets, and enabling access to vast untapped markets in those regions. In the fiscal year 2011, WPPGY made roughly 24 acquisitions in new markets, 32 in new media and 8 in consumer insight.

The current Zacks Consensus Estimates for WPP plc are $5.66 and $6.19 for the fiscal years 2012 and 2013, respectively. The estimates represent year-over-year growth of 5.29% for 2012 and 9.34% for 2013.

Based in Dublin, Ireland, WPP Group provides advertising and communications services worldwide. The company provides stiff competition to peers like Interpublic Group of Companies Inc. ( IPG ), Omnicom Group Inc. ( OMC ) and Publicis Groupe SA (PUBGY.PK).

We currently maintain a Neutral recommendation on WPPGY. The stock also bears a Zacks #3 Rank, implying a short-term (1-3 months) Hold rating.

INTERPUBLIC GRP ( IPG ): Free Stock Analysis Report
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WPP PLC ( WPPGY ): Free Stock Analysis Report
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