Up 14% in a month, could the Paladin Energy share price go higher?

An Asian woman looks towards the sky and the future.An Asian woman looks towards the sky and the future.

The Paladin Energy Ltd (ASX: PDN) share price has soared in the past month. But could it go even higher?

Paladin shares have leapt 14.7% since market close on 23 August and are currently trading at 78 cents. In today’s trade, the Paladin share price is down 7.14%. Industrial action in France is disrupting nuclear power generation, according to Reuters.

Let’s take a look at the outlook for the Paladin Energy share price.

What’s going on?

Paladin is a uranium explorer and producer with a 75% stake in the Langer Heinrich uranium mine in Namibia.

The company’s share price has risen in the past month amid the global energy crisis.

Analysts at Macquarie have recently tipped the Paladin Energy share price to rise and have a $1.10 price target on the company. This is a 41% upside on the current share price.

The broker likes Paladin since it has a “near-term path to market” and is “fully licensed in known uranium jurisdictions”.

Meanwhile, news that multiple nations are planning to restart nuclear reactors could also help the Paladin share price. Uranium is a fuel for nuclear power reactors.

For example, Japan is planning to revamp seven nuclear reactors by the northern hemisphere summer next year. This follows Japan closing down nuclear plants after the 2011 Fukushima disaster. Germany and Belgium are also looking to keep their nuclear power plants open for longer. The Philippines is also looking into setting up modular nuclear power plants, according to a news report today.

A new United Nations report released this week has recommended the UNECE region “scale up electrification of all sectors with emphasis on renewable energy and nuclear power” to achieve carbon neutrality. The report states:

To achieve carbon neutrality by 2050, renewable energy supply will grow fastest, followed by nuclear power. All technology solutions leading to carbon neutrality need to be supported.

Paladin Energy share price snapshot

Paladin shares have fallen 8% in the past year, while they have lost 11% year to date.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 30% in the past 12 months and around 32% year to date.

Paladin has a market capitalisation of nearly $2.3 billion based on the current share price.

The post Up 14% in a month, could the Paladin Energy share price go higher? appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Monica O’Shea 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 recommended Macquarie Group Limited. 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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