PDN PALADIN RESOURCES LTD Overnight Price: $10.00 ABN Amro rates...

PDN PALADIN RESOURCES LTD Overnight Price: $10.00
ABN Amro rates PDN as Buy - The broker notes the company has lifted its offer for Summit (SMM) by around 22% and declared the offer final, though acceptance is likely to be complicated by Summit's strategic alliance with Areva.
While this creates uncertainty as to the success of the offer the broker sees the placement to Areva as a positive as it will help Summit accelerate work at the jointly owned Mt Isa project.


Target price is $12.10 Current Price is $10.00 Difference:$2.10 - (brackets indicate current price is over target). If PDN meets the ABN Amro target it will return approximately 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. ABN Amro forecasts a full year FY07 dividend of 0.00 cents.

Market Sentiment: 0.3

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AddedMacquarie rates PDN as Neutral - The broker has not adjusted its earnings given the company's revised offer for Summit (SMM), though it notes it is gambling in the sense it has called the offer final.
No change to rating as it sees how the offer plays out.


Target price is $9.30 Current Price is $10.00 Difference:($0.70) - (brackets indicate current price is over target). If PDN meets the Macquarie target it will return approximately - 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. Macquarie forecasts a full year FY07 dividend of 0.00 cents and EPS of -1.08 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is -925.93.

Market Sentiment: 0.3

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UBS rates PDN as Neutral 2 - PDN has risen to the challenge, increasing its scrip offer for SMM to 1:1.67 or an implicit price of $5.99 on yesterday's close. The offer is final and Aerva has indicated it won't move to full takeover.
The broker calculates the deal to match the US$30/lb per resource offered by Areva, but it will prove 26% dilutive in the near term as SMM looks to 2010 for first production.


Target price is $11.70 Current Price is $10.00 Difference:$1.70 - (brackets indicate current price is over target). If PDN meets the UBS target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. UBS forecasts a full year FY07 dividend of 0.00 cents and EPS of 1.00 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1000.00.

Market Sentiment: 0.3

FN Arena