PAN – UBS rates the stock as Neutral

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Nickel production was below the broker’s forecast in the March quarter while aggregate site costs were flat.

UBS retains a Neutral call based on valuation. While exploration results at Lanfranchi may re-invigorate the asset, the broker is uncertain about the Savannah North project.

UBS considers the downside to nickel prices is now relatively limited but investors may still be reticent about the stock because of thin margins and the weak macro environment. Target is steady at 54c.

Sector: Materials.

Target price is $0.54.Current Price is $0.49. Difference: $0.05 – (brackets indicate current price is over target). If PAN meets the UBS target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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