deutsche bank - $3.30, page-15

RBS Australia 15/02/2010 1 Buy $4.22 19.5%

Target $4.22 (was $4.33). The company's loss of US$19m for the half were broadly as the broker had forecast, though it notes the result was not reflective of future earnings given both mines are still being ramped-up.

While the broker remains positive on the stock longer-term as evidenced by its Buy rating is sees no great rush to enter the stock given performance is likely to be modest until there is delivery on the Kayelekera project.

Citi 15/02/2010 1 Buy, High Risk $5.40 53.0%

The broker notes Paladin moved from a US$20m loss in the September quarter to a US$0.4m profit in the December quarter on record sales. That said, the result was still below Citi's US$5m forecasts, however the broker believes the trend is more important than the number. The Buy call is maintained.


UBS 15/02/2010 3 Neutral $4.00 13.3%



The 1H result was lower than UBS had been expecting largely due to higher costs.

Having remodelled its depreciation and amortisation numbers, UBS has lowered its FY11 profit forecasts by 22%.

While the valuation is seen as interesting, the broker says it needs comfort on operational issues.