After a tough month, Paladin Energy Ltd (ASX: PDN) shares are suddenly back in demand.
The uranium producer is up 6.69% to $11.15 at the time of writing, with buyers returning after a recent pullback.
Paladin shares are still down around 18% over the past month, so today's move only claws back part of the recent fall.
But it does add another twist to what has already been a huge 12 months for shareholders.
The stock remains up more than 100% over the past year, helped by stronger interest in uranium and Paladin's exposure to the Langer Heinrich Mine in Namibia.
So, what is pushing buyers back into the stock today?
Image source: Getty Images
Uranium is helping sentiment
A stronger uranium price appears to be one of the main drivers behind today's move.
Uranium futures were recently trading above US$86.50 per pound, near their highest level in 2 months.
Prices have been supported by stronger risk appetite and growing confidence in longer-term demand from nuclear power.
Large tech companies are also adding to the interest, with nuclear energy increasingly being looked at as a power source for data centres.
Microsoft Corp (NASDAQ: MSFT) and Meta Platforms Inc (NASDAQ: META) have both been linked to nuclear power agreements, while US policy has also become more supportive of nuclear energy.
This gives investors another reason to look at uranium producers such as Paladin.
Paladin owns the Langer Heinrich uranium mine in Namibia and has projects across Australia, Canada, and Africa.
Brokers are still interested
Broker commentary also appears to be helping sentiment.
Recent broker updates show Morgan Stanley initiating coverage on Paladin with a buy rating and a $13.05 share price target.
Macquarie has also been positive, with a $13.25 target appearing in recent broker notes.
Ord Minnett has taken a more cautious view, cutting its price target to $9.50 earlier this month.
Nonetheless, the broader broker picture is still mixed. The latest consensus shows 4 buy ratings, 3 holds, and 2 sells, with an overall recommendation of hold.
What the chart is showing
The stock is now trading around $11.14, with today's move taking it back above its previous close of $10.45.
The day's range so far is $10.67 to $11.15, while the 52-week range is $5.74 to $15.10.
The chart also shows Paladin sitting below the middle of its recent Bollinger Band range.
The upper band is around $13.75, while the lower band is near $9.56.
Its relative strength index (RSI) is sitting around 46, which tells us the stock isn't looking heavily overbought after its recent fall.
