BROKER ALERTS (1 X KAR, 1 X PAN, 5 X PDN, 6 X PRU)
UBS rates KAR as Buy (1) -
Karoon Gas provides an update on production tests and the broker likes the news, citing promising wire-line logging, farm-out of interests and partner searches.
UBS retains its Buy rating but drops the target price to $7.60 from $8 to reflect the recent placement.
Target price is $7.60 Current Price is $5.36 Difference: $2.24 If KAR meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June. UBS forecasts a full year FY13 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 107.20.
Market Sentiment: 0.8
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UBS rates PAN as Neutral (3) -
Panoramic Resources beat the broker by a decent clip but UBS sees nothing to get excited about with more losses guided out to FY14 (double UBS estimates).
UBS says weak nickel prices and falling mine life outweigh improved cash management initiatives. The Neutral rating is retained as is the 30c share price.
Target price is $0.30 Current Price is $0.25 Difference: $0.055 If PAN meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June. UBS forecasts a full year FY14 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.13.
Market Sentiment: 0.3
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BA-Merrill Lynch rates PDN as Underperform (5) -
Paladin posted a weak result as expected. The broker has cut its FY14 profit forecast by 81% to reflect lower realised uranium prices. PDN suffers from higher costs and gearing than peers in a weak uranium market, the broker notes, and uranium price weakness may persist for a while yet.
Target falls to 52c from 65c and Underperform retained.
Target price is $0.52 Current Price is $0.56 Difference: minus $0.04 (current price is over target). If PDN meets the BA-Merrill Lynch target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. BA-Merrill Lynch forecasts a full year FY14 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 187.29.
Market Sentiment: -0.4
Citi rates PDN as Sell, High Risk (5) -
The FY13 loss was driven by further impairments and higher than expected costs. The Langer Heinrich sale will be reinitiated in September, but after failing to find a buyer in early August Citi thinks it will be challenging, given weakness in uranium prices.
The share placement and further impairments have lowered the broker's net present value, resulting in a reduction in the target price to 50c from 67c. The Sell/High Risk rating is retained.
Target price is $0.50 Current Price is $0.56 Difference: minus $0.06 (current price is over target). If PDN meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. Citi forecasts a full year FY14 dividend of 0.00 cents and EPS of minus 2.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.58.
Market Sentiment: -0.4
Deutsche Bank rates PDN as Hold (3) -
The FY13 result showed operations continue to burn cash. Cash flow was negative and US$18m lower than Deutsche Bank's estimate. The Hold rating is retained because of balance sheet risks. The price target is reduced to 72c from 80c.
Target price is $0.72 Current Price is $0.56 Difference: $0.16 If PDN meets the Deutsche Bank target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June. Deutsche Bank forecasts a full year FY14 dividend of 0.00 cents and EPS of minus 4.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.25.
Market Sentiment: -0.4
JP Morgan rates PDN as Neutral (3) -
Paladin's result was in line but the important news is the company has restarted the process of selling down a stake in Langer Heinrich. Kaya's value has been written down to zero. The broker suggests a successful sale would be a positive in that it would reduce debt, but the bottom line is PDN's days are numbered if it continues to burn cash in a low uranium price environment. Clearly, better uranium prices would help.
Target falls to 65c from 95c and Neutral retained.
Target price is $0.65 Current Price is $0.56 Difference: $0.09 If PDN meets the JP Morgan target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June. JP Morgan forecasts a full year FY14 dividend of 0.00 cents and EPS of 0.00 cents.
Market Sentiment: -0.4
UBS rates PDN as Neutral (3) -
Paladin's loss outpaced the broker but overall UBS says the underlying result (after excising impairments) was in line with expectations.
The broker tips a 20% rise in earnings in FY14 but, while the target price, unchanged at 70c, is 30% below net present value, a recovery in the uranium price and evidence of Japanese restarts is needed before upside can be realised.
UBS retains a Neutral rating.
Target price is $0.70 Current Price is $0.56 Difference: $0.14 If PDN meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June. UBS forecasts a full year FY14 dividend of 0.00 cents and EPS of 0.00 cents.
Market Sentiment: -0.4
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BA-Merrill Lynch rates PRU as Neutral (3) -
Perseus' result beat at the headline but fell short at the operational level due to higher costs. Costs are expected to be reduced and FY14 production guidance has been maintained, the broker notes. PRU has hedged a third of its next 18 months of production against the gold price while a decision on Sissingue has been pushed out to early next year.
The broker retains Neutral and $1.00 target.
Target price is $1.00 Current Price is $0.78 Difference: $0.22 If PRU meets the BA-Merrill Lynch target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June. BA-Merrill Lynch forecasts a full year FY14 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.75.
Market Sentiment: 0.3
Citi rates PRU as Sell (5) -
Citi looks forward to a period of consolidation for Perseus after a year of disappointment and operational difficulty at Sissingue. Cash generation consistency should continue from the core asset Edikan in Ghana. Sissingue remains on ice pending a more certain outlook for gold.
The Sell rating is retained and the target price is raised to 70c from 50c, weighted towards NPV given the expected loss in the year ahead.
Target price is $0.70 Current Price is $0.78 Difference: minus $0.08 (current price is over target). If PRU meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. Citi forecasts a full year FY14 dividend of 0.00 cents and EPS of minus 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.38.
Market Sentiment: 0.3
Credit Suisse rates PRU as Outperform (1) -
Credit Suisse found few items in the result to spur interest, noting there is more clarity in the quarterly production reports. Production guidance was reiterated and the Edikan mine plan is expected to be released in September.
The Outperform rating and $1.00 price target are maintained.
Target price is $1.00 Current Price is $0.78 Difference: $0.22 If PRU meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June. Credit Suisse forecasts a full year FY14 dividend of 0.00 cents and EPS of 0.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 410.53.
Market Sentiment: 0.3
JP Morgan rates PRU as Neutral (3) -
Perseus' result was strictly a beat but only on currency gains. Operating cashflow was nevertheless better than expected. The broker expects PRU's price to track the gold price with low gearing and operational leverage providing support. Cost reductions at Edikan will help but the scope for reducing overall cost is limited, the broker warns.
Target rises to 80c from 55c but Neutral retained.
Target price is $0.80 Current Price is $0.78 Difference: $0.02 If PRU meets the JP Morgan target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June. JP Morgan forecasts a full year FY14 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.00.
Market Sentiment: 0.3
Macquarie rates PRU as Outperform (1) -
With all-in costs of US$1,100-1,200/oz forecast in the September quarter, Macquarie notes Perseus will remain a volatile stock, tied to movements in the gold price.
The broker is paying attention to the potential of the revised Edikan mine plan, to be released in September, which should outline a way to improve cash generation from the mine.
The Outperform rating and $1.00 price target are maintained.
Target price is $1.00 Current Price is $0.78 Difference: $0.22 If PRU meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June. Macquarie forecasts a full year FY14 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.75.
Market Sentiment: 0.3
UBS rates PRU as Buy (1) -
Perseus Mining turned in a mixed result, outpacing the broker on some metrics and falling short on others.
The broker says the earnings profile hasn't changed, the outlook for the gold price remains soft and FY14 looks subdued. UBS reckons downside is limited but delivery could be two years out.
The broker retains a Buy rating and lifts the target price to $1 from 90c to reflect a 9% rise in net present value.
Target price is $1.00 Current Price is $0.78 Difference: $0.22 If PRU meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).
The company's fiscal year ends in June. UBS forecasts a full year FY14 dividend of 0.00 cents and EPS of 0.00 cents.
