logo
  Join        Login             Stock Quote

North American Palladium (PAL) Downgraded To 'Sector Performer' By CIBC

 December 17, 2012 03:41 PM
 


(By Balaseshan) CIBC World Markets Inc. analyst Leon Esterhuizen downgraded North American Palladium Ltd. (TSE: PDL) (NYSEAMEX: PAL) to "Sector Performer" from "Sector Outperformer" and lowered price target to $1.70 from $2.40.

North American Palladium announced on Thursday that Jeffrey Swinoga had resigned as Vice President Finance and Chief Financial Officer. This follows the resignation of former Chief Executive Bill Biggar in early September, Esterhuizen noted. The CEO position remains vacant, with interviews currently taking place.

Another change in management suggests to the analyst that the risk of an operational disappointment at the company is mounting. As a result, he has adjusted model to account for this, forecasting lowering production and higher costs over forthcoming years.

[Related -North American Palladium Ltd (USA) (PAL): The Only $1 Stock You Should Buy Today]

Esterhuizen said PDL remains the most palladium dominated miner globally and as such should benefit from a rising metal price. However, while operational and management opaqueness continues to cloud the outlook, the stock is likely to maintain its loss of correlation with an improved spot palladium price.

The analyst said the price target is based on a price-to-cash flow ratio multiple of 10 times one-year forward, a discount to peers recognizing the increasing risks. As a result of his price target reduction, he reduced rating, as of December 14.

The brokerage widened its 2012 loss per share estimate to $0.06 from $0.04, while lowering its 2013 EPS estimate to $0.02 from $0.05.

[Related -Automated Discovery Of Trading Systems]

PDL is trading up 0.77% at $1.31 on Monday, while PAL trades down 0.75% at $1.33.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageThe Global Credit Market Is Now A Lit Powderkeg

Although the Street seems to agonize over equity valuations and recent price volatility, as I see it the read on...

article imageBacktesting With Synthetic and Resampled Market Histories

We’re all backtesters in some degree, but not all backtested strategies are created read on...

article imageThe Missing Lesson: Unfriend the Trend

Beware forecasts that simply extrapolate the year’s start read on...

article imageHave The Saudis Miscalculated The Impact Of Lower Crude Prices On US Production?

In 2014 the Saudis could no longer accept the loss of crude oil market share as the North American read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.