• Deutsche Bank maintains a "Hold" rating for S4 Capital PLC (OTC:SCPPF), raising the price target from 24 GBp to 28 GBp.
• S4 Capital's shares surged by 39% following the announcement that its 2025 results are expected to exceed both its downgraded guidance and current consensus expectations.
• The company reported a like-for-like net revenue decline of 8.5%, better than the anticipated 10% drop, with an operational EBITDA margin projected at around 12%.

S4 Capital PLC, trading as SCPPF on the OTC exchange, is a digital advertising company led by Sir Martin Sorrell. The company has recently been in the spotlight due to its financial performance and stock movements. On January 27, 2026, Deutsche Bank maintained its "Hold" rating for SCPPF, with the stock priced at $0.38. Deutsche Bank also raised the price target for S4 Capital from 24 GBp to 28 GBp.

S4 Capital's shares have seen a notable increase following the announcement that its 2025 results are expected to exceed both its downgraded guidance and current consensus expectations. This positive news has boosted investor confidence, leading to a 39% rise in the share price to 26.9p. The company ended the year with revenue and earnings surpassing market expectations, despite issuing three profit warnings in the previous six months.

The company reported a like-for-like net revenue decline of 8.5%, which was better than the anticipated 10% drop. The operational EBITDA margin is projected to be around 12%, with earnings expected to exceed the consensus estimate of £75 million. S4 Capital's net debt at year-end was significantly lower than the consensus figure of £133 million, thanks to improved treasury management and stricter control of working capital.

S4 Capital anticipates a year-end leverage of approximately 1.1 times operational EBITDA, surpassing its target of 1.5 times. The company also plans to propose a final dividend, further enhancing its financial outlook. The current price of SCPPF is $0.38, reflecting a slight increase of 0.0004, or 0.10%. Over the past year, SCPPF has reached a high of $0.48 and a low of $0.19, with a market capitalization of approximately $255.5 million.