Credit Suisse has upgraded Straits Asia Resources (AJ1.SG) to Neutral from Underperform, says Dow Jones.

“We see Straits Asia Resources offering similar upside to that of its Indonesian coal peers,” says Credit Suisse but adds there’ll be more downside risks to share price, earnings estimates if regulatory approval of permits to carry out work in Northern Leases region of coal miner’s Sebuku mine gets delayed again.

The research house has raised target price to $2.20 from $1.50, based on 50% chance Northern Leases production will start in January next year.

“Straits Asia Resources’ production at the existing Tanah Putih pit at Sebuku is limited by forestry boundary. As such, it is critical for Sebuku to start production from the Northern Leases area,” says Credit Suisse.

Shares +0.5% at $1.95.