Advertising recovery steeper than expected Q2 21 expectations have materially increased (from high single digit to mid-teens) for Publicis and WPP, with momentum good and the recovery in advertising spending proving steeper than expected, due to ongoing vaccine rollouts, US government stimulus and the progressive reopening of economies. Advertising market growth expectations for FY21 have been upgraded, reflecting the steeper recovery curve. Meanwhile, PMIs are indicating steady Q2 trends in North America and in Europe, though less so in the rest of the world (later vaccinations, situation in India). Q2 results likely to be good, although broadly expected With Q2 2020 being the easiest comps for advertising holdcos, the rebound dynamics are well understood. For the second quarter, we now expect 13.7% organic net revenue growth at Publicis Groupe (above company guidance of 8% to 10%), and 14.6% for WPP (on easier comps). H2 uncertainties and ongoing Mediapalooza While we believe Q3 is likely to see continued good momentum and consumer enthusiasm over the summer, many COVID-19 risks remain for H2. Meanwhile, the Mediapalooza continues, with new reviews announced (Bayer, Eli Lilly, Chanel, Kingfisher). Our tracking suggests the top 10 reviews represent cUSD13bn billings (with new biz appointments up +38% yoy, +25% vs 2019). Forecast changes We have increased our FY21 expectations for both Publicis Groupe and WPP. We now expect 7% organic net sales growth at WPP (from 5.8%) and 6.5% at Publicis Groupe (from 5.6%). At the margin level we now stand above company guidance at Publicis at 16.9%, and within company guidance for WPP at 13.7%. We increase our FY21 EPS by 3% for WPP and Publicis. We Rate Publicis and S4 Capital Outperform, WPP Underperform We continue to like Publicis, which in our view offers the best value proposition among its peer group, while WPP''s strategy remains to be proven and several of its accounts are under...