The Paladin Energy Ltd (ASX: PDN) share price has soared 19% in a week, but how high could it go?
Paladin shares have jumped 19% since the market close on 7 April. They're currently trading at 95 cents, up 4.4%.
Let's take a look at the outlook for Paladin Energy.
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How high could the Paladin share price go?
Paladin is planning to explore uranium at the Langer Heinrich mine in Namibia. Uranium prices have helped drive up the Paladin share price recently, but two brokers think it could go higher.
Shaw and Partners recommends Paladin as a buy with a $1.30 price target, The Australian reports. This is nearly 37% more than the current share price.
Commenting on Paladin, Shaw and Partners said:
In our view Paladin is the standout in the sector on a risk-reward basis.
The pathway to production for Langer Heinrich is well-defined and low risk, underpinned by a quality resource and detailed technical work.
Meanwhile, Canaccord Genuity tips the Paladin share price to reach $1.02. This is a 7.3% upside at the time of writing. Canaccord is confident Paladin has the cash to bring Langer Heinrich to production. Paladin recently completed a $200 million capital raise to restart production at the mine.
The price of uranium is up 0.8% to $63.75 a pound, trading economics data reveals. The uranium price has exploded 113% in a year and is currently at its highest level since the Fukushima disaster in 2011.
Valuation snapshot
The Paladin Energy share price has ascended 131% in the past year. It is up 0.21% year to date.
For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 24% in a year.
Paladin has a market capitalisation of about $2.7 billion based on the current share price.
