From Citi to FMG:
Downgrade to Sell — Interim result was slightly ahead of consensus/Citi at EBITDA level, but NPAT was 16% below our estimate due to higher D&A & interest cost, partially offset by lower tax. An increase in D&A has downgraded our earnings estimate and we reduce our target price to A$2.20/share, previously A$2.40. With iron ore prices expected to fall to US$56/t in 2Q15, before bottoming at US$53/t in 3Q15, we downgrade our recommendation to Sell, previously Neutral.
Iron ore bottoming in Q315? With Anglo, Sino, Roy Hill, RIO, BHP and Vale all still ramping up and China slowing?
I think not!