Goldman Sachs bullish on Stagwell with buy rating and $13 price target

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

Goldman Sachs anticipates Stagwell will grow revenue at a 6% compound annual growth rate (CAGR) from 2026 to 2030, driven by its Digital Transformation business and new creative wins. The company’s last twelve months saw $3.04 billion in revenue, with InvestingPro analysis suggesting the stock is undervalued. Stagwell has also won key pitches in its Marketing Services and Digital Transformation segments.

Efforts to revamp the underperforming Media & Commerce segment include high-profile management hires and investment in a new technology platform called The Machine. Goldman Sachs expects this segment to grow at a 5% CAGR over the same period. The firm believes improved media performance will bolster organic growth and increase media revenue contributions.

Stagwell recently reported stronger-than-expected second-quarter 2026 earnings, with adjusted earnings per share of $0.25 on revenue of $786.3 million, surpassing Wall Street estimates. The company raised its full-year adjusted earnings per share guidance to $1.03 to $1.17, up from $1.00 to $1.10. Adjusted EBITDA rose 15% to $108.7 million, with margins expanding to 17.2%. Organic revenue growth hit 10%, the best performance in six quarters, while organic net revenue growth was 5%.