<strong>WPP GROUP</strong><br />Citigroup has downgraded WPP to “sell” saying that a continuation on second quarter trends would suggest a 2009 full-year organic decline of 7.5 per cent and limited growth in 2010. The broker sees risk to the earnings and thinks that the first half results in August will be a negative catalyst, and lowers its a target price to 340p.<br /><br /><strong>DIAGEO</strong><br />Diageo’s announcement of a series of restructuring initiatives across its operations – which are to drive annual cost savings of £40m by 2012 – led Goldman Sachs to update its estimates and rate the stock a “buy”. The broker also notes sterling’s strength against the dollar, which offsets the positive impact of the cost savings.<br /><br /><strong>PEARSON</strong><br />Execution Securities believes that Pearson is the most defensive stock in the European media sector and has it as a “top pick”. It expects earning upgrades during the rest of the year, and also said the company may lift full year guidance later this month at its first half results. The broker has a “buy” rating and a 750p target price.