Extracts taken from the West AustralianJP Morgan said the...

Extracts taken from the West Australian

JP Morgan said the favourable ruling in court case against IINet removed the biggest overhang on the company's stock. It retained an overweight recommendation with a price target of $2.89, and added that IINet still traded an a significant discount to the market.

Merrill Lynch re-confirmed its buy recommendation and said there should be a renewed focus on IINet's fundamentals, citing its "very strong subscriber growth and compelling valuation metrics"

The broker said IINet's first half results due on February 22, were expected to show revenue growth of 7.6%. with net profit before abnormal items of 30.2% IINet's focus on customer satisfaction and churn reduction place them in a very strong position now and in the future