FYI Morgan Stanley have downgraded IOF this week. Got out yesterday.
'What's Changed Price Target A$0.70 to A$0.63 Rating Overweight to Underweight FY12e EPU From 5.15c to 4.75c (-7.7%) FY13e EPU From 5.26c to 4.84c (-8.0%) Moving to Underweight: In-depth analysis of our F2012-13 forecasts prompts a further 8% downgrade to our earnings and we are now 10-14% below consensus. We expect IOF to use the upcoming F1H11 results and update on its restructuring process to update the market on medium term earnings and after the strong share price performance in recent weeks, we believe the shares will underperform. Trading at a 16% discount to NTA and providing a 6% F2012e yield, the shares are not particularly expensive, but, with the majority of A-REITs showing improving earnings momentum, we believe IOF could be left behind in the near term'
IOF Price at posting:
$2.40 Sentiment: Sell Disclosure: Not Held
