Your updated Paladin (PDN) thoughts please

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Question asked 24/02/2024

Your updated Paladin (PDN) thoughts please

Hi Market Matters PDN has fallen below the $1.20 price target you had as your latest view when Market Matters will consider buying back PDN after taking profits in Jan. Could you please update us on your current view of the Uranium space and at what price you will consider PDN again. regards Deb Can you please explain why the share price are dropping faster than the Uranium price or am I comparing wrong ? Also now with PDN at $1.13 is MM considering PDN or is still the preference for BOE. Thanks Nilang,

Answer

Hi Guys,

PDN has now corrected ~20% from this month’s more than 20-year high as both Boss Energy (BOE) and Paladin (PDN) have followed US uranium business Cameco Corp (CCJ US) lower after it disappointed investors with its 4th quarter results, i.e. on the day CCJ fell -7.9% after the missing estimates but it’s also continued to drift lower since.

MM still likes PDN and the sector into weakness and the stock/sectors is likely to be on our shopping list over the coming weeks/months, as near to $1 as we can, although we concede, we’re getting close around the $1.10 mark.
Stocks will often move in a magnified way on the up and downside versus the underlying commodity, particularly when ‘hot’ money gravitates in, the key is not holding the baby when that money leaves, as it has over the past few weeks.

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Paladin Energy Ltd (PDN)

LAST UPDATED 22/02/2024 13:37

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