J.P.Morgan has downgraded Paladin Energy (ASX:PDN) to Neutral from Overweight 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 broker notes 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 downgraded the company to Neutral as a result of the disappointing asset sale news. PDN's target price has therefore fallen to 95c from $1.30 (current price $1.00) with a price-to-earnings ratio of negative 3.17 (based on last closing share price).