UPDATE: Raymond James Downgrades North American Palladium Ltd. to Market Perform, Lowers PT Following COO Departure

In a report published Tuesday, Raymond James analyst Alex Terentiew downgraded the rating on North American Palladium Ltd. PAL from Outperform to Market Perform, and lowered the price target from C$2.50 to C$1.40. In the report, Terentiew noted, “With its COO departing, an LDI operations review ongoing, and need for financing enhanced due to negative preliminary revisions to 2013 production, cash costs and CapEx guidance, we believe the pressure falls squarely on the shoulders of the new CEO Phil du Toit to carry the company through this challenging time. Given the likely increase in NAV-diluting equity financing, required to plug the rising funding gap, and significant operating challenges highlighted by the negative guidance revisions, we have reduced our target price to $1.40 (from $2.50) and downgraded PDL to Market Perform.” North American Palladium Ltd. closed on Monday at $1.13.