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Citi and J.P.Morgan have both downgraded Paladin Energy (ASX:PDN) to Sell and Neutral respectively as a result of disappointing news regarding the company's asset sale process. PDN has announced the termination of its asset sale process, suggesting weak uranium prices are not leading to the full value of Langer Heinrich being appreciated. PDN will look to raise US$80m in equity instead, however, the brokers note that this will not prevent the company's ongoing cash burn ahead of debt refinancing due in 2015. Although J.P.Morgan takes a positive stance on long term uranium prices and notes PDN offers high leverage to prices, it has nonetheless downgraded PDN. Citi has downgraded earnings estimates based on weak spot uranium prices and the company's intention to take a further US$180m impairment on assets. Citi now has a target price of $0.67 (current price $1.00) while J.P.Morgan has cut its target to $0.95.


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