Sakari

Sakari: Credit Suisse maintains at Neutral, but slashes TP to $2.30 from $3, valuing the stock at 12x P/E assuming benchmark coal price of US$115/t, and 9x P/E assuming benchmark price of US$128/t. Says base case is the latter, with forecasts FY12e at 10% below consensus. Cut FY12e EPS forecast for Sakari by 12%, with 5% cut in Jembayan sales volume and higher strip ratio assumptions for Sebuku. Says forecast in FY11e is unaffected by the collapse of the bridge and lower JBY sales, which are offset by higher SBK volume. Expects further downgrades in consensus forecast but sees strong yield as cushion.