The Paladin Energy Ltd (ASX: PDN) share price is down 5.29% in today’s trade after the broad ASX market sell-off. But it’s still up 31.6% in the past three weeks.
At market close on Wednesday, Paladin shares finished trading at 89.5 cents per share.
Despite the fall in the market sentiment, there appears to be optimism in the Paladin share price. Here’s why.
United States inflation data spooks investors
It was all roses for Paladin shares in the last three weeks until today. Overnight, inflation data came in at higher than original forecasts, causing a wave of pessimism across Wall Street.
This is why the S&P/ASX 200 Index (ASX: XJO) is down 2.58% today.
Economists expected a 0.1% fall in the US consumer price index, mainly due to a decline in oil prices. However, it was the other way around as consumer prices in the US jumped 0.1% in August.
The worst-performing sectors today included real estate and technology, which fell by 4.17% and 3.15% respectively. However, the energy sector fared better, dropping 2.24% today.
Macquarie bullish on Paladin shares
As covered by my colleague Zach Bristow, investment bank Macquarie raised its estimates on the Paladin share price.
Further, Macquarie reinitiated its buy call. This is supported by bullish forecasts of uranium prices rising another 17% to 21% on top of initial forecasts.
The analysts’ forecast is premised on recent news that Japan ordered the development of new nuclear reactors.
Paladin share price snapshot
In the last year, the Paladin share price has dipped 5.8%, but has clawed its way back with a 20% jump in the past month.
The ASX 200 is down 8% in the past year and continues to record falls with a 3% decline in the last month.
The market capitalisation of Paladin is around $2.81 billion.
The post Even with today’s falls, the Paladin Energy share price is still up 31% in 3 weeks. Here’s why appeared first on The Motley Fool Australia.
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More reading
- ASX uranium shares have had a stellar month. Are they just getting started?
- Why Macquarie is tipping 15% upside for the Paladin Energy share price
- Why has the Paladin Energy share price rocketed 20% in a month?
- What’s the outlook for ASX uranium shares in September?
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Raymond Jang has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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