Barclays cuts advertisers Interpublic, Omnicom, WPP over AI concerns
Barclays says it has been a long-standing agency bull but came away from Cannes ad festival meetings more bearish than before
While the brokerage still believes that "agencies will adapt, survive and ultimately thrive" in an AI world, they need time, money, and execution to adapt, it says
Barclays downgrades US advertisers Interpublic IPG.N and Omnicom OMC.N to "equal-weight" from "overweight," citing anticipated challenge from artificial intelligence
Broker also downgrades British advertising and public relations firm WPP WPP.L, expecting continued underperformance amid AI turn
The brokerage maintains France's Publicis PUBP.PA at "overweight," citing their strong position to navigate AI buildup
It also keeps its bullish stance on Havas HAVAS.AS, rating the stock "overweight" as in its view it warrants a 15% discount to peers
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