If you are looking for an ASX uranium stock to buy, then it could be worth considering Paladin Energy Ltd (ASX: PDN) shares.
That's the view of analysts at Bell Potter, who are feeling positive about this uranium producer following the release of its quarterly update.
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What is the broker saying?
Bell Potter was pleased with Paladin Energy's performance during the third quarter.
It highlights that its production was ahead of expectations, which has underpinned an upgrade to its guidance for FY 2026. The broker commented:
PDN reported quarterly uranium production of 1.3Mlb (2Q FY26 1.2Mlb; BPe 1.2Mlb), sales of 1.0Mlb (down 16% QoQ) and closing uranium inventory of 2.2Mlb, up 0.55Mlb QoQ due to timing of shipments. Commissioning of the remaining mining fleet and strong plant performance drove increased mining and production rates. PDN realised an average price of US$68/lb (down 13% QoQ) reflecting higher volumes sold into base escalated contracts. Production costs were US$40/lb.
Last week, PDN upgraded FY26 guidance to production of 4.5-4.8Mlb (previously 4.0- 4.4Mlb; YTD 3.6Mlb) and capital expenditure (excluding capitalised stripping costs) of US$15-17m (previously US$26-32m; YTD US$7m). […] Implied guidance points to a lift in production costs as mined volumes feed a higher portion of processed tonnes (vs processing stockpiled ore) and diesel cost inflation, which accounts for around 10-15% of PDN's cost of production.
ASX uranium stock tipped as a buy
According to the note, the broker has retained its buy rating on Paladin Energy's shares with an unchanged price target of $15.30.
Based on its current share price of $12.87, this implies potential upside of 19% over the next 12 months.
Commenting on its investment thesis, Bell Potter said:
We retain our Buy recommendation and $15.30/sh TP. PDN is positively exposed to rising uranium markets, with ~53% exposure to spot prices out to 2030. Production at LHM continues to improve, with transition to processing primarily fresh ore, milled grades should lift from 501ppm in 1H as should plant performance and reliability. The only risk we see is water disruptions as we enter a seasonally tricky period known for algal blooms which can impact availability from the desalination plant.
Overall, this could make the ASX uranium stock worth considering if you are looking for exposure to this side of the market for your portfolio.
