* Q1 EPS $0.06 vs $0.14 year-ago
* Q1 rev rises five-fold to C$36.7 mln
* RBC Capital cuts co to sector perform from top pick
* Shares fall 19 pct (Adds analyst comments in paragraph 5,6; updates share movement)
May 10 (Reuters) - North American Palladium Ltd’s quarterly loss narrowed, but the precious metals company’s shares fell 19 percent as it cut its 2011 palladium production forecast.
Shares of the Toronto, Ontario-based company were trading down at C$4.55 on Tuesday morning, making it the second-most heavily traded stock on the Toronto Stock Exchange.
The company, which plans to shift focus to development from production, cut its full-year production forecast to 145,000-155,000 ounces of palladium.
It had earlier forecast 165,000-175,000 ounces.
Earlier in the day RBC Capital Markets downgraded the company to “sector perform” from “top pick” and lowered the price target on the stock to C$5.70 from C$8.65.
“The first-quarter results disappoint in every respect - lower production, lower grades, lower tonnage, higher costs,” analysts said. (Reporting by Aftab Ahmed and Amruta Sabnis in Bangalore; Editing by Don Sebastian)