Citi keeps 'buy' on Australia's Paladin after production miss; sees 2H recovery

** Citi says uranium miner Paladin's PDN.AX 1QFY27 production missed its expectations due to weaker recoveries

** Brokerage notes PDN reiterating FY27 outlook, with improving recoveries and grades expected to support a production recovery weighted to the second half of FY27

** Citi is disappointed by weaker cash generation due to lower receipts and higher costs, but it continues to see limited funding risk for PLS

** Adds, management remains open to a strategic partner, which Citi believes could unlock value beyond funding benefits

** Citi keeps its "buy" rating

** Stock down nearly 9% YTD, as of last close