This morning, the stock, which hit a historic low below 225 pence last March, was up about 5% at 275 pence, steaming ahead of the FTSE 250 index's limper  0.5% increase.

In a note titled "All the pieces are there, they just need to be put together," Berenberg stated it had initiated coverage of the stock with a buy recommendation and a target price of 405 pence, representing 54% upside potential.

From its perspective, the former undisputed leader amongst communication specialists has recently lost ground to competitors who invested more aggressively in data analytics, technology and more centralized models.

A step-by-step reconstruction

This loss of momentum has resulted in declining revenue, pressured margins, successive restructurings, and a sharp drop in market capitalization—all factors that have fueled negative market sentiment, the broker continued.

However, the analyst expects the new management team to successfully complete the simplification process initiated by its predecessors.

The return to positive organic growth and margin expansion expected from 2028 onwards should also support dividend growth, the financial intermediary explained. This would translate into an attractive yield of 7% to 10%, secured by a solid free cash flow (FCF) yield of between 12% and 22% over the 2027-2028 period.

It added that the owner of the Ogilvy agency, among others, retains some of the most attractive assets in the sector.