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 imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

article imageAmazon.com, Inc. (AMZN) Q2 Earnings Preview: Missing on the Top and Bottom Lines, Again?

Amazon.com, Inc. (NASDAQ:AMZN) will release its second quarter financial results after market close on read on...

article imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT 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.