Paladin Energy shares rise as Bell Potter hikes target price
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The news: Paladin Energy shares were higher after morning trade as Bell Potter hiked its target price on the uranium miner by more than 40%.
The numbers: Paladin shares were up 5.5% to $7.52 at 12:55pm AEST, extending gains of nearly 20% over the last month. Rival uranium stocks Deep Yellow (2.5%) and Boss Energy (2%) also notched modest gains.
Bell Potter retained its 'buy' rating on the stock and lifted its 12-month target price from $6.50 to $9.20.
The context: Bell Potter analyst Regan Burrows expects Paladin to re-rate over the coming quarters as the business shakes off negative earnings sentiment over fiscal 2025.
Paladin withdrew its production guidance in March after heavy rain forced it to pause operations at its Langer Heinrich Mine in Namibia.
Burrows also believes the promotion of chief operating officer Paul Hemburrow to chief executive and managing director from 1 September represents a positive transition for Paladin.
The source: Bell Potter research
