SCPPF - Citi Predicts 280% Surge For This High-Risk High-Reward Stock: Is This The Next Big Investment Opportunity? | Benzinga
Citi has flagged S4 Capital (OTC:SCPPF) as a high-risk yet potentially rewarding investment opportunity.
What Happened: Despite the recent challenges faced by S4 Capital, a UK-based digital advertising and marketing services company, Citi analysts believe that the stock could witness a significant upside of 280%, setting a price target of 230 pence, reported CNBC.
The company, founded by advertising industry veteran Martin Sorrell, saw a 25% drop in core earnings in 2023 due to reduced tech-heavy client spending and a slowdown in new business wins. However, the company’s shares have rebounded, rising nearly 15% this year, following a 60% decline over the past 12 months.
While the outlook for 2024 remains cautious, Citi analysts see potential for a medium-term business rebound. They suggest that once the tech sector stabilizes and project-based work increases, S4 Capital will be well-positioned to re-accelerate.
Citi recommends that investors who can afford to take a 12-month view consider the stock’s risk-reward profile, which they ...