Citi cuts target price on Paladin Energy despite 'well-timed' raise
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The news: Citi has slashed its target price on Paladin Energy after the uranium miner announced a $300 million equity raise on Tuesday.
The numbers: Citi cut its target price from $9.30 to $9. Paladin last closed at $7.88.
The context: Citi analyst Kate McCutcheon called the raise 'well-timed', saying it takes advantage of a 17% uptick in Paladin's share price in the month-to-date period, tracking a rise in the uranium index.
However, Citi lowered its target price due to the impact of the raise on Paladin's share count and cash.
Paladin said on Tuesday that proceeds from the raise will be used to advance the development of its Patterson Lake South project towards a final investment decision.
The source: Citi research
