Cormark upgrades Paladin to top pick

Cormark Securities has upgraded Paladin Labs (TSX:PLB) to “top pick” with a new price target of $30 from “buy” and $24.50 on the back of another strong quarter that beat its estimates for revenue, EBITDA and earnings.  The stock closed at $25.45 on Thursday.

Analyst David Dean writes that the company’s first quarter performance is particularly interesting because it comes during the seasonally weakest quarter of Paladin’s year, suggesting that it is “well positioned” for the remainder of 2010.  As a result, he raised his full year estimates for revenue above the company’s guidance of at least $120 million and his profit forecast to 62 cents a share from 57 cents.

“We also believe that Paladin is an excellent go-to-name in turbulent economic times as its business is not sensitive to the broader economy,” he added.