Goldman Sachs Upgrades Stagwell on Growth Outlook

Goldman Sachs has upgraded advertising group Stagwell to a "buy" rating from "neutral" with a $13 price target over the next 12 months. The brokerage cited strong new business wins in marketing services and digital transformation as key drivers for the upgrade. Stagwell secured $312 million in new revenue during the first half of 2026, matching the performance of its larger rival Publicis despite having significantly lower total revenue.

Goldman expects Stagwell’s organic net revenue to grow by about 8% annually from 2026 to 2028, outpacing the 6% consensus forecast. The firm highlights digital transformation and advocacy as major growth areas, supported by ongoing gains in new business. However, Stagwell’s media and commerce business has faced challenges, with organic growth under pressure for six consecutive quarters. Goldman anticipates improvement in this division as the company invests in a new technology platform and enhances senior management.

The brokerage forecasts adjusted EBITDA of $502 million for Stagwell in 2026, slightly below the $507 million consensus estimate. The $13 price target implies a 2027 enterprise value-to-EBITDA multiple of about eight times. Goldman suggests that Stagwell could command a premium compared to larger advertising groups due to its faster growth, business mix, and exposure to digital transformation.

In contrast, Goldman initiated coverage of Havas with a "neutral" rating and a €19 price target. The brokerage expressed concerns over the growth prospects of Havas’ media business, which lacks scale in the United States and could be vulnerable to market-share losses. Goldman expects Havas to deliver organic growth of 2.4% in 2026 and 2.1% in 2027, alongside margin expansion.