Research produced by the sellside will fail to break even in the next four years despite banks sharply reducing the number of analysts and stocks covered, according to a consultancy.

Sellside research made an estimated loss of $1.9bn (€1.6bn) last year as $7.1bn costs outstripped revenues of $5.2bn, said the US Equity Research 2006 Industry Outlook, published by consultancy Integrity Research Associates. It predicted that by 2009, the sellside would continue to lose money on research, although this will have fallen to $1.4bn.