Goldman Sachs bullish on Stagwell with $13 price target

Goldman Sachs has initiated coverage on Stagwell Inc. with a buy rating and a 12-month price target of $13.00, announced on October 5, 2026. The firm upgraded the stock from neutral, citing strong growth prospects. Stagwell's shares are currently trading at $8.36, up 71% year-to-date and 53% over the past year. The company reported $312 million in new revenues in the first half of 2026, a notable figure given that Publicis, a much larger competitor, generates approximately seven times that amount annually.

Goldman Sachs expects Stagwell to achieve a 6% compound annual growth rate (CAGR) in revenue from 2026 to 2030, driven by its Digital Transformation business and new wins in its creative segment. The company's revenue over the last twelve months stood at $3.04 billion. Analysts also highlight that Stagwell's stock appears undervalued at current levels, according to InvestingPro analysis.

Stagwell is making strides to revamp its underperforming Media & Commerce segment, including high-profile management hires and investment in a new technology platform called The Machine. Goldman Sachs projects a 5% CAGR for this segment over the same period. The firm believes improved performance in media will bolster organic growth and increase media revenue contributions.

In recent developments, Stagwell reported stronger-than-expected second-quarter 2026 earnings, with adjusted earnings per share reaching $0.25 on revenue of $786.3 million. These results surpassed Wall Street estimates, which had anticipated earnings of $0.19 per share and revenue of $754.56 million. The company also raised its full-year adjusted earnings per share guidance to a range of $1.03 to $1.17, up from the previous range of $1.00 to $1.10. Stagwell attributed its success to broad-based growth across its business lines, particularly in digital transformation and communications.