Rabu, 29 Februari 2012

ITMG, Solid delivery, CLSA

ITM’s FY11 earnings were 11% ahead of our estimates and 14% of
consensus. ITM continues to provide the highest earnings visibility of the
Indonesian coal producers, completing a hedge program to lock in 2012
earnings. We adjust 12CL earnings by -5% to reflect the hedged coal and
oil volumes. A reserve upgrade combined with benchmark coal price
strength means the stock should trade at mid-cycle multiples and we
raise our target price to Rp,49,000/sh. Stock remains our top sector pick.