latest ratings

RBS Australia 10/09/2009 1 Buy $5.61 16.2%
Target $5.61 (was $5.20). The company is to place up to 15% of its issued capital to institutions to raise around $420m, with the broker expecting the placement will be well received as balance sheet concerns will be removed.

While its EPS estimate fall by around 11% to account for the additional shares on issue the broker has lifted its price target to reflect its view the shares will re-rate post the issue.

Buy retained.

JP Morgan 10/09/2009 3 Neutral $4.93 4.7%
The company has announced an institutional private placement to raise up to $440m , the broker noting much of the funds may go to acquisitions given on its numbers the group would generate enough cash flow in coming years to fund its various projects.

On the news the broker's Neutral rating is retained.

Citi 03/09/2009 1 Buy, High Risk $5.40 13.0%
The FY09 result was a tiny bit better than Citi expected and despite the recent slackening in the spot price, the broker remains positive on the uranium outlook. Citi cites the fact that global reactor build is continuing a pace and as a result, supply concerns are building.

Otherwise, Citi notes that growth projects are performing and the company is otherwise well funded. The Buy call and $5.40 price target are maintained.

UBS 02/09/2009 3 Neutral $4.90 4.1%
After stripping out one off items, the result was in line with UBS expectations.

D&A assumption changes lead the analysts to lift their FY10 earnings forecasts by 7%.

However, weak prices and production risks are expected to remain as challenges.

Deutsche Bank 02/09/2009 3 Hold $4.00 - 17.5%
Paladin's loss was greater than the broker expected, given greater ramp-up and exploration costs. With cashflow tight Paladin has been forced to draw down on its debt facility although first half FY10 inventory sales mean it's just a bridging deal.

Paladin's realised uranium price was also lower than expected given a higher level of spot over contract sales. As the U price continues to drift and the Kayakelera ramp-up remains slow, the broker sees no positive catalysts.

Hold retained on slightly lower earnings forecasts.

Macquarie 01/09/2009 3 Neutral $4.60 - 2.2%
Paladin's result was in line and the broker has made no changes. Paladin is best leveraged to the uranium price given no legacy contracts, the broker notes, and could run if the world became concerned about uranium supply.

BA-Merrill Lynch 01/07/2009 3 Neutral $4.91 4.3%
The company has approved the stage III expansion at Langer Heinrich, with the broker noting that at current spot prices, the expansion will only take 15 months to pay for itself.

Incorporating Langer Heinrich III into its numbers sees the broker's valuation and target price increase by 9% (the latter to $4.91 from $4.50). The broker notes that every further 10% increase in the uranium spot will add 9% to its valuation.

While the broker says it likes this stock, especially the growth profile and corporate appeal, it wants to see a higher uranium price or a 10-15% lower share price before it moves to a Buy. Neutral maitnained.