Paladin Energy Ltd (ASX: PDN) shares have been in focus this week.
The uranium producer's shares hit a 52-week high on Wednesday after it released a strong quarterly update.
Is it too late to invest? Let's see what analysts at Bell Potter are saying about the stock.
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Should you buy Paladin Energy shares?
Bell Potter is feeling very bullish about the uranium producer following its quarterly update, which was comfortably above expectations. Commenting on the quarter, the broker said:
Uranium production was 1.23Mlbs (BPe 1.1Mlbs, consensus 1.1Mlbs), a 16% increase on 1QFY26. Mill throughput improved over the quarter to 1.2Mt from 1.15Mt, with an uplift in grade processed of 524ppm as higher-grade ore was sourced from G & F pits (1QFY26 477ppm). Recoveries also improved to 91% from 86%. Sales were 1.4Mlbs (+169% QoQ), with closing uranium inventory at 1.6Mlbs (down from 1.8Mlbs).
Average realised price was US$71.8/lb, up from US$67.4/lb in 1QFY26 (estimated revenue US$100.5m). C1 costs were US$39.7/lb produced (1QFY26 $41.6, FY26 guidance US$44-$48/lb), cash costs (inclusive of stripping and stockpile costs) were ~US$48/lb produced. PDN finished 2QFY26 with cash and investments of US$278m and a US$70m revolving credit facility (1Q $269m + US$50m credit facility).
Overall, Bell Potter believes that this "result demonstrated the underlying performance capabilities of the business."
And while management has yet to upgrade its production guidance for FY 2026, the broker suspects that it will happen, assuming no weather interruptions.
Valuation boost
In light of the above, Bell Potter has retained its buy rating on Paladin Energy shares with an improved price target of $15.30 (from $12.50).
Based on its current share price of $12.82, this implies potential upside of 19% for investors over the next 12 months.
Commenting on its recommendation, the broker said:
Our target price is increased to $15.30/sh (previously $12.50/sh) on adjustments to our production, sales and costs. PDN is demonstrating stabilised production ahead of consensus estimates. The market continues to ascribe little value to Patterson Lakes South (PLS) in our opinion, which provides upside as the project is de-risked through environmental permitting. EPS changes in this report are: FY26 +157%, FY27 +1% and FY28 -2%.
Our NPAT estimates are increased by US$29m (+205%), US$10m (+7%) and US$3m (+2%) in FY26, FY27 and FY28 respectively.
Overall, this could make Paladin Energy shares worth considering if you are looking for exposure to the booming uranium market.
