Paladin Energy shares rally as UBS reiterates 'buy' conviction
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The news: Paladin Energy rallied in morning trade after UBS reiterated its 'buy' rating in the stock, describing it as the "best of the bunch" compared to ASX rivals Boss Energy and Deep Yellow.
The numbers: Paladin shares were up 4.1% to $6.66 at midday AEST. Boss (+3.2%) and Deep Yellow (+1%) were also higher as the ASX 200 lowered 0.1%.
The context: UBS analysts reiterated its 'buy' rating on Paladin, calling it "relatively better position" compared to its peers.
The analysts noted global commodities investor Sprott now estimates that uranium demand growth has moved from 0% per year five years ago to between 3% and 4% per year going forward. This increase has been driven by improved policy support and secular demand growth, they said.
Sprott has also flagged that supply remains severely constrained due to a decade of underinvestment.
What they said: "Global energy focus has shifted from decarbonisation to security of supply," the analysts said.
"From a regional perspective, China continues to underwrite near-term demand, though positive moment was noted for the US post Trump's four executive orders and with Europe reversing prior phase-out decisions."
The source: UBS research
