Morgan Stanley Overweight On InterOil Corporation (IOC)

Morgan Stanley has an Overweight rating and a $135 price target on shares of InterOil Corporation IOC. In a note to clients, Morgan Stanley writes, "This morning, IOC announced it entered into a non-binding agreement for partnership with EWC to construct a 1 bcf/d LNG import terminal and 300MW combined cycle gas turbine power plant, sourced with 500ktpa of LNG from IOC. We expect IOC to finalize the deal in 2Q11, with an estimated ~$20MM equity investment. IOC reported earnings ($0.78/share loss) and filed the 2010 resource estimate, both of which were largely in-line and less material. Expectations for more catalysts drove price volatility, in our view." Shares of IOC lost $3.23 yesterday to close at $74.15, a loss of 4.1%.