Goldman Sachs Bullish on Stagwell with Buy Rating and $13 Target

Goldman Sachs has initiated coverage of Stagwell Inc. with a buy rating and a $13.00 price target as of 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 for the first half of 2026, matching the performance of Publicis, despite having significantly lower total revenue.

Goldman Sachs projects that Stagwell will grow revenue at a compound annual growth rate (CAGR) of 6% from 2026 to 2030, driven by its Digital Transformation business and new wins in its creative segment. The company generated $3.04 billion in revenue over the last twelve months. According to InvestingPro analysis, Stagwell’s stock appears undervalued at current levels.

The company is also revamping its underperforming Media & Commerce segment, with high-profile management hires and investment in a new technology platform called The Machine. Goldman Sachs expects this segment to grow at a CAGR of approximately 5% over the same period. Improved performance in media is anticipated to support stronger organic growth and increase the contribution of media revenues to the group.

In its recent earnings report, Stagwell exceeded Wall Street expectations for the second quarter of 2026. Adjusted earnings per share reached $0.25 on revenue of $786.3 million, surpassing estimates of $0.19 per share and $754.56 million in revenue. The company raised its full-year adjusted earnings per share guidance to a range of $1.03 to $1.17, up from $1.00 to $1.10. Stagwell attributed its performance to broad-based growth across its business lines, particularly in digital transformation and communications.