It has been a disappointing period for Paladin Energy Ltd (ASX: PDN) shares.
Since the start of February, the uranium developer's shares have lost 20% of their value to end Friday's session at 66.5 cents.
This is despite a recent rebound, which has seen its share price rise 19% since falling as low as 56 cents in late March.
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Are Paladin Energy shares now good value?
With some analysts suggesting that a bull market is starting for uranium, investors may be wondering whether its shares are good value.
Well, the good news is that one leading broker sees huge amounts of value in its shares at the current level. Though, it is worth noting that its recommendation comes with a speculative warning.
According to a recent note out Bell Potter, its analysts have a speculative buy rating and 99 cents price target.
Based on where Paladin Energy shares are currently trading, this implies potential upside of approximately 49% for investors over the next 12 months.
The broker commented:
PDN is in a good position leading into the restart of operations at Langer Heinrich Mine (LHM), with production largely covered for CY24 and CY25 we believe. Over 1HFY23 PDN executed three additional offtake contracts, with another awaiting finalisation. This, including the previously announced Duke contract and the offtake with JV partner Chinese National Nuclear Corp (CNNC), brings the total number of offtake parties to six.
In 2QFY23 PDN announced the improvement of payment terms and increase in offtake volumes with CNNC, which provides greater spot price leverage over CY24 & CY25 and speedier cash receival. Details pertaining to volumes of the four additional contracts will be released once the final contract is executed.
