Wells upgrades Stagwell to Overweight on 2025 growth acceleration

Wells Fargo upgraded Stagwell (STGW) to Overweight from Equal Weight with a price target of $9, up from $8. The firm has increased confidence that Stagwell’s growth will accelerate in 2025, driven by recent wins, its digital transformation, and artificial intelligence. Wells’ “blue sky” valuation is $11 per share. Stagwell’s strong new business and a more favorable underlying environment for digital transformation will translate to “peer-leading” 2025 organic growth, the analyst tells investors in a research note. Wells views the stock’s valuation as “compelling” at current levels.