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Morgan Stanley Lowers PT on Stagwell Stock from $8 to $7, Maintains Hold Rating

Stagwell Inc. (NASDAQ:STGW) is one of the Best Affordable AI Stocks to Buy. On August 1, Morgan Stanley lowered the price target on Stagwell Inc. (NASDAQ:STGW) stock from $8 to $7, maintaining its Hold rating.

Benjamin Swinburne from Morgan Stanley slightly adjusted the price target on STGW following the Q2 FY2025 results. The company posted revenue of $707 million, up by 5% year-over-year and surpassing estimates by $14.04 million. Stagwell is experiencing strong growth in its digital transformation segment, citing a 12% rise excluding advocacy. The company is investing in AI and new technologies to reduce costs by nearly 15% and enhance efficiency. The analyst remains optimistic on STGW; however, the company is facing challenges in integrating recent acquisitions and scaling technology initiatives.

A modern workspace filled with customer experience personnel, discussing digital solutions.

Despite the challenges, Stagwell expanded its top client relationships with the top 25 customers, generating $175 million in net revenue, a 26% increase from a year ago. Stagwell has reiterated its full-year 2025 guidance and expects total net revenue to grow by almost 8% and expects adjusted earnings per share between $0.75-$0.88.

Stagwell Inc. (NASDAQ:STGW) is a digital-first marketing company that uses AI across its various digital tools to enhance creative, media, and communications workflows. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and the Communications Network.

While we acknowledge the potential of STGW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STGW and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

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  • 175 Teslas
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  • 140 Metas
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  • 65 Microsofts
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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