The Week: City News - WPP's recovery set 'to lag'

An analyst's report on WPP's current consensus figures for 2010 has downgraded the network's profit forecast by 15 per cent next year and by 32 per cent in 2010.

The Collins Steward report, which describes marketing companies as "cyclical laggards", argues that companies like WPP will take longer to recover from the economic downturn. The report said: "Consensus numbers are far too high. Agencies are late-cycle plays and we believe that agencies' recovery is likely to lag (behind) other media sub-sectors, as they have done in the past."