IRI's DH20 result, in the context of the company's history:...

IRI's DH20 result, in the context of the company's history:



I have to say, this doesn't feel to me like your regular, garden variety downgrade.

Something has got quite seriously out of whack.

It will be interesting to see what the Revenue-Cost jaws do going forward; if they open more due to Costs going down that Revenues going back up, then that will not be a good thing and could indicate some structural issues at play.

A single half-year result does not define a company, but given the sheer size of this downgrade, my sense is that the market will wait quite some time to make sure that nothing is fundamentally broken before the stock gets re-afforded its very ritzy valuation multiples.

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