WPP reported results above consensus expectations WPP reported organic net sales growth of +9.5%, above consensus of c7% (arguably expected after Publicis and Omnicom also beat consensus for organic growth earlier in the month). This suggests a c13% 2y stack and a 9.2% 3y stack. While the company outlined that the performance was broad-based, the beat was mostly driven by Latam (+22.4%) and APAC (+10.4%). By discipline, GroupM momentum continued at +12.8% (on a +5.6% last year), while the strongest growth driver was Public Relations at +14%. Management upgrades FY like-for-like guidance The company upgraded FY22 like-for-like net sales growth from ''around 5%'' to 5.5%-6.5%. This was driven by 1) the better-than-expected performance in Q1 and 2) ''client demand for our services remaining strong as we enter the second quarter''. When asked on the moving parts of the growth for the remaining of the year, Management outlined clients'' budgets have remained unchanged. Changes to estimates We update our model for FX (now we have a c2% contribution from FX versus 0% before) and we also increase our organic net sales growth expectations from 4% to 5.3% to reflect the better-than-expected Q1 and the continued momentum. We leave our margins unchanged as per company guidance. Bottom line, we increase our EPS by 5% for 2022 and 2023. Finally, we increase our target price by 5% from 1,070p to 1,120p, in line with our EPS change. We remain Neutral on WPP At a time when cyclical fears are returning to the advertising agency sub-segment, we argue that top-line visibility has improved, and we believe management is rather conservative on the rest of the year. As for WPP, we believe that at 10x PE 2023, a lot of the risks are well reflected in the share price. Our new target price suggests 13% upside on current share price, and we are happy to remain Neutral on the name.