io price doom and gloom overdone, page-51

Credit Suisse has today issued this bullish review on FMG. At the very least it puts a pretty solid floor under it at current prices, with the possibility of a major uptrend developing when the metals start to catch up with what has already happened in leading industrials.

The ASX accumulation index is at all time highs, at some point the metals with good cash flow numbers will start to catch up. BHP in particular is a laggard drag.

Fortescue Metals Group Ltd. could slash its gearing ratio to 39% by the end of FY14, from 72% last December, thanks to the planned sale of a minority stake in its infrastructure assets, Credit Suisse says in a note.

The bank has consequently lifted the stock's rating to Outperform from Neutral and upped its target price on FMG to A$6.00 a share, from A$5.50 previously.

It expects the iron ore producer to sell a 35% stake in its port and rail infrastructure for about US$3.3 billion, which would reduce secured debt significantly and cut its annual interest bill by US$200 million. This "is likely to see FMG rerated to investment grade," Credit Suisse says.