Stagwell: Stock Continues To Trade At A Discount Despite Improved Fundamentals
Summary
- I maintain a buy rating for STGW due to strong execution, client wins, and growth in digital transformation and cloud solutions, despite trading at a discount to peers.
- STGW's fundamentals have improved significantly, with higher quality client wins and substantial growth in average annual revenue per top-25 client.
- The digital transformation segment shows sustained growth, and the cloud segment, now 10% of revenue, is poised to become a significant growth driver.
- Despite trading at a discount, STGW's growth potential and solid execution support a compelling case for multiple expansion, warranting a buy rating.
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