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That old chunk of yellow metal may not be the most exciting investment, but the gold price has outshined many markets over the last year.

Traditionally used as a safe haven, the precious metal has regained its appeal amid a tumultuous time in the world. Not only are global economies battling with the after tremours of COVID-19 in the form of inflation — there continues to be uncertainty surrounding the Ukraine invasion.

However, as inflation runs rampant, increases in interest rates look more certain and sooner. What does that mean for the gold price?

Kiwi in the coal mine for the gold price

Historically, investors might shy away from gold when interest rates begin to lift. The belief is improving yields in cash and bond markets would persuade would-be gold bugs to another area away from the safe-haven metal.

If that were to be true, then the Reserve Bank of New Zealand (RBNZ) is leading the charge in testing whether rate increases will pull funds out of the commodity.

Across the ditch, New Zealand upped its interest rates by 50 basis points yesterday to 1.5%. Hitting the highest level since June 2019, a time before the inundation of monetary stimulus created by the pandemic.

Yet, the gold price did not balk at the move. Instead, the glimmering commodity pushed forth with its recent march upwards. Since 6 April, the commodity’s price has rallied from US$1,925 to its current level of US$1,977, up 2.7%.

We spoke with the head of distribution for ETF Securities Australia, Kanish Chugh, who explained why higher rates may not be the negative influencer investors expect.

It’s a very unique moment in terms of when traditional or previous rates rate hike cycles have been, you haven’t had this combination of impacts and influences. You haven’t had the high inflation prints that are coming out; wage growth in the US; and particularly haven’t had that geopolitical Ukraine tension — not only from a geopolitical sense, but then also on the supply side as well, because a fair amount of precious metals comes out of Russia. So, considering all those factors you actually see a bit more of a gold price support.

In addition, Chugh added that the gold price has tended to outperform (in US dollar terms) the likes of the S&P 500 when measured 12 months after the first rate hike.

What are the rate hike expectations in Australia?

As of this week, three of the big four Aussie banks expect the first interest rate increase since 2010 will be handed down in June. The expectation comes as Australia’s annual CPI inflation rate hits 3.5%.

Both the Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) suspect there will be five rate rises over the following 6 months. Whereas National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are forecasting four.

Ultimately, how the gold price responds will likely depend on various other factors in addition to rate increases. Especially if investors are concerned that a sudden rate hike could pose the potential for a slowing in economic growth.

The post Could interest rate hikes send the gold price into the mountains? appeared first on The Motley Fool Australia.

More reading

• Why is the Transurban share price revving up on Thursday?
• Woodside share price lifts amid US listing plans
• Why did the Atomos share price just tumble 16%?
• Goldman Sachs names 3 ASX 200 mining shares to buy today
• The South32 share price is closing in on its all-time high. Here’s why

Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Transurban Group (ASX: TCL) share price is in the green today on the release of the company’s latest quarterly update.

And what a quarter it was. The company saw average daily traffic (ADT) on its toll roads rise 0.4% from that of the previous comparable quarter.

That points to a ‘return to normal’ following the COVID-19 pandemic and resulting restrictions.

At the time of writing, the Transurban share price is trading at $13.67, 0.37% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XNJ) has gained 0.48% today. Meanwhile, the S&P/ASX 200 Industrials Index (ASX: XNJ) – home of Transurban – has risen 0.89%.

Let’s take a closer look at today’s news from the toll road operator.

What’s driving the toll road operator’s stock?

The Transurban share price is rising on Thursday. Its gains follow the release of its quarterly update for the three months ending 31 March.

The company saw an uptick in the use of its toll roads over the period compared to the same point in 2021. However, its ADT was 3.4% lower than that of 2019’s March quarter.

“The March quarter again demonstrated traffic recovery occurring in line with the progressive easing of government restrictions and increased economic activity,” the company noted.

Severe weather and flooding in southeast Queensland and northern New South Wales impacted the use of toll roads during the period. However, traffic quickly rebounded following the events.

Sydney recorded a 5% drop in ADT, although the city’s ADT was 9.8% higher than in 2019. Meanwhile, Brisbane’s ADT fell 0.6% but was 0.5% higher than in 2019.

Looking at Victoria, March brought CityLink its highest monthly average daily traffic numbers since the onset of the pandemic.

ADT rose 5.6% in Melbourne last quarter, helped by lifting COVID-19 restrictions. However, the city’s ADT was down 16.5% compared to that of 2019.

Additionally, the return of mostly unrestricted domestic travel saw Transurban’s Australian airport-focused assets record their busiest periods since March 2020.

It was a similar story in the Greater Washington area in the United States, where March traffic on the 95 Express Lanes was at its highest since the pandemic began. Traffic in Montreal, Canada, also rose slightly for the quarter versus pre-pandemic levels.

ADT numbers in North America rose 19.6% last quarter, alongside the average dynamic toll price on the 95 Express Lanes and the 495 Express Lanes. However, the region’s ADT fell 10.7% on that of 2019.

Transurban advised the West Gate Tunnel Project in Victoria was still set to open in late 2025, with the company making progress on all three sections of the project last quarter.

Transurban share price snapshot

The Transurban share price has been struggling lately.

It’s currently 1.9% lower than it was at the start of 2022. For context, the ASX 200 has slipped 0.97% this year.

The toll road operator’s stock has also slipped 0.22% over the last 12 months while the index has recorded a 7% gain.

The post Why is the Transurban share price revving up on Thursday? appeared first on The Motley Fool Australia.

More reading

• Why did the Transurban share price have such a good run in March?
• Broker names 3 more of best ASX 200 shares to buy in April
• 5 things to watch on the ASX 200 on Wednesday
• 2022 is not being kind to the Transurban (ASX:TCL) share price. Could this be set to change?
• Which ASX 200 shares is AFIC (ASX:AFI) betting on to make money?

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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Oil remains buoyant this week with Brent crude now back above US$100 per barrel. At the time of writing, it is fetching US$108/Bbl.

In the meantime, natural gas markets continue raging to yearly highs with the natural gas price nudging US$7.05/MMBtu on Thursday.

Woodside Petroleum Ltd (ASX: WPL) shares are also lifting in afternoon trade to $32.36. This follows an announcement by Woodside today that it plans to list on the New York Stock Exchange (NYSE).

US listing plans give Woodside share price a bump

Woodside shares are currently up 0.97% at the time of writing.

The company proposes the listing to occur after the merger with BHP Group Ltd (ASX: BHP), which is set for June.

Woodside said it intends to list its shares on the NYSE in the form of American Depositary Shares (ADSs). It has filed the necessary F-4 form to register its shares – akin to an initial public offering (IPO) on the ASX, albeit for foreign companies listing on US exchanges. This allows investors to trade the equity of non-US companies on a local exchange.

Woodside said it hopes to list in June after the merger with BHP is finalised. Last week, the pair took another step on the ladder in gaining third-party approval from an independent auditor.

“The listing on the NYSE is expected to become effective on completion of the Merger, targeted for
1 June 2022,” Woodside said. “Each Woodside ADS represents one ordinary share of Woodside.”

The company stated further:

The Registration Statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective.

The effect on ASX investors is there will be more liquidity, which has implications for trading activity.

Investors seeking more information on Woodside’s ADS listing can read the F-4 and F-6 forms here.

Woodside share price snapshot

Woodside shares have climbed 47% this year to date and are up by 34% over the past 12 months.

The post Woodside share price lifts amid US listing plans appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Could these ASX shares be the new FAANG stocks on the block?
• Why did the Woodside share price just get hit with a 5% downgrade?
• What’s with the Woodside share price on Monday?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Zach Bristow 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 Bruce Jackson.

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The Atomos Ltd (ASX: AMS) share price is losing ground today following the surprise conclusion of a senior leadership figure.

During mid-afternoon trade, the video technology company’s shares are down 16.11% to 75.5 cents.

Atomos appoints interim CEO

Investors are selling Atomos shares after the shock announcement that its CEO, Estelle McGechie will no longer serve in the role.

According to the release, Ms McGechie has yet to relocate to Australia, which is a requirement for the top job.

Atomos stated that its CEO must reside in Melbourne where its headquarters is based.

As a result of the departure, Atomos chief technology officer, Trevor Elbourne will assume the CEO role for the interim.

Mr Elbourne, who lives in the Victorian capital, is expected to launch the company’s new products later this month. He and his team have been diligently working on improving video production workflows for the last two years.

Notably, Mr Elbourne is one of Atomos’ founding employees, having joined the company in 2012. Since then, he has played a vital role in determining Atomos’ technology strategy and product roadmap.

In 2017, Mr Elbourne was appointed chief technology officer and oversaw the successful development of Atomos’ flagship Ninja V and Shinobi products.

The board advised it will commence a global search process for a permanent appointment.

Atomos reconfirmed its FY22 guidance for revenue of $95+ million as well as an EBITDA margin of 12% to 15%.

Atomos’ non-executive chair, Chris Tait touched on the CEO change saying:

I would like to thank Estelle for her efforts at Atomos and on behalf of the Board wish her the best in her future endeavours.

Trevor is a logical and highly capable appointment as interim CEO given his intimate knowledge of the products and technology that have made Atomos one of the global leaders in video technology today.

As the Company embarks on an exciting expansion of our product line-up, the Board is confident Trevor will bring his deep experience in technology innovation to ensure our products continue to meet the changing needs of our growing customer base.

About the Atomos share price

Over the past 12 months, Atomos shares have lost 25% in value, with year to date dropping around 30%.

Based on today’s price, Atomos has a market capitalisation of roughly $168.98 million.

The post Why did the Atomos share price just tumble 16%? appeared first on The Motley Fool Australia.

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• Goldman Sachs names 3 ASX 200 mining shares to buy today
• The South32 share price is closing in on its all-time high. Here’s why
• Altium share price: Is it an ASX buy or a falling knife?
• Netwealth share price falls after third quarter update disappoints
• AGL share price in the green amid ‘virtual battery’ deal

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The mining sector has been a great place to invest this year. Thanks to rising commodity prices, mining shares have been charging higher while other areas of the market go backwards.

The good news is that it may not be too late to invest in the sector according to Goldman Sachs.

It has been looking at the resources sector again this week and has given its verdict on a number of shares. Here are three that Goldman rates as buys:

Rio Tinto Limited (ASX: RIO)

According to the note, Goldman Sachs has a buy rating and $136.40 price target on this mining giant’s shares. Its analysts like Rio Tinto due to its strong free cash flow generation and production growth potential.

It said: “We are Buy rated on RIO discounting a long run iron ore price of US$64/t (vs. GSe long run of US$70/t real) and trading on a FCF yield of 15% in 2022E (based on our US$129/t Fe forecast for 2022). We think RIO has had a challenging March Q in the Pilbara due to equipment and labour shortages impacting 90Mtpa of iron ore replacement project tie-ins, but we believe RIO will turn the corner and return to production growth in mid-2022 on higher iron ore and copper volumes.”

South32 Ltd (ASX: S32)

South32 shares could also be in the buy zone according to Goldman Sachs. Its analysts have a conviction buy rating and $5.80 price target on the miner’s shares. The broker likes South32 due to its base metal exposure, which it expects to underpin significant earnings and free cash flow.

Goldman said: “We are Buy rated on S32.AX (on CL) with strong FCF (17% base case for FY23), exposure to base metals (75% EBITDA; aluminium & alumina c. 50% of FY23 EBITDA, copper c.10 %, zinc/nickel c. 20%), and with 7%/3% Cu Eq production growth in FY22/FY23 driven by; ~30% or c. 280ktpa increase in aluminium production from the Alumar restart & c. 17% increase in Mozal stake, creep in nickel from Cerro Matoso and lead/zinc/silver from Cannington, and the Sierra Gorda copper acquisition.”

Whitehaven Coal Ltd (ASX: WHC)

A final ASX 200 mining share that has been named as a buy is this coal miner. Goldman believes Whitehaven Coal is well-placed to benefit from very strong coal prices. The broker has a buy rating and $5.30 price target on its shares.

Its analysts commented: “The already tight global coal markets have the potential to be further impacted with the Russia-Ukraine situation putting Russian coal exports at risk based on possible sanctions and “self-sanctioning” by European & Asian utilities and steel mills, in our view. […] We remain Buy rated on WHC trading at a ~15% discount to our NAV & c. 50/20% FCF yield in FY22/FY23. WHC is a compelling de-gearing and capital returns story in our view.”

The post Goldman Sachs names 3 ASX 200 mining shares to buy today appeared first on The Motley Fool Australia.

More reading

• The South32 share price is closing in on its all-time high. Here’s why
• 2 strong ASX 200 dividend shares analysts love
• Here are the top 10 ASX mining companies by market cap
• If you’d bought $10,000 of Rio Tinto shares 5 years ago, here’s how much you’d have now
• Whitehaven share price could surge 45% if coal price remains strong: broker

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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The South32 Ltd (ASX: S32) share price is continuing to trend upwards this year, buoyed by positive investor sentiment.

The mining outfit’s shares have zoomed almost 30% higher in 2022 in contrast to the benchmark index. The S&P/ASX 200 Index (ASX: XJO) has struggled to hold ground lately, lifting by less than 1% over the same timeframe.

At the time of writing, South32 shares are up 0.49%, trading at $5.135.

Let’s take a look at what could be driving these gains for South32 shares.

Rising commodity prices

Investors have been buying up South32 shares in 2022 as the aluminium price charges higher in recent times.

The war between Ukraine and Russia has pushed a general lift across the board in commodities prices, with demand outstripping supply as constraints kick in.

South32’s main export, aluminium, is currently fetching for US$3.23 per kilogram. That represents a gain of 14% since the beginning of 2022 and is 41% higher than this time last year.

Strong performance

The miner also reported strong performance across key metrics in its FY22 half-year results.

Finishing the period with net cash of US$975 million, the South32 board opted to bump up its dividend to shareholders considerably.

A fully-franked interim dividend of US 8.7 cents per share was declared, reflecting a massive 621% increase from H1 FY21.

Management noted that the latest dividend equates to a payout ratio of 40% of cash earnings, in line with its dividend policy.

With bumper returns due to the rising price of aluminium, shareholders may be expecting another strong dividend for the full year.

It is also worth noting that there is a capital management program that has been active since FY18. This returns excess capital efficiently through an on-market share buyback.

The board further expanded its capital management program by US$110 million to US$2.1 billion, leaving US$302 million to be returned by 2 September 2022.

South32 share price summary

Over the past 12 months, the South32 share price has climbed almost 80% on the back of favourable market conditions.

The company’s shares reached a record high of $5.44 in early March, within cooee of where it trades today.

Based on valuation grounds, South32 presides a market capitalisation of roughly $23.89 billion, and has approximately 4.65 billion shares on issue.

The post The South32 share price is closing in on its all-time high. Here’s why appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs names 3 ASX 200 mining shares to buy today
• 2 strong ASX 200 dividend shares analysts love
• Here are the top 10 ASX mining companies by market cap
• Why is the South32 share price edging higher today?
• The S32 dividend is being paid today. Here’s what you need to know

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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The Altium Limited (ASX: ALU) share price is enjoying a solid day of trading so far this Thursday. At the time of writing, Altium shares are up a healthy 1.34% at $33.19. That performance stands out against the S&P/ASX 200 Index (ASX: XJO), which is also up today, but by a far more muted 0.47%.

But this standout share price performance today doesn’t put much of a dent in the rather dismal returns Altium shares have given investors since the start of the year. Year to date in 2022 so far, the printed circuit boards software-as-a-service (SaaS) company remains down by more than 25%. That’s an unfortunate date range to be sure, since Altium actually hit its last all-time high right on new year’s eve. That high came to $45.30 a share. 

So after such a significant slide over this year so far, many investors might be debating whether Altium shares are a buy today, or whether this company is nothing but a falling knife.

Well, let’s see what one ASX broker reckons.

Altium share price: sell or buy today?

As my Fool colleague James covered last week, broker Bell Potter is one who is bullish on Altium shares at their current level. Bell Potter currently rates this ASX tech share as a buy. That comes with an elevated 12-month share price target of $41.25.

The broker reckons that the markets are interpreting the war in Ukraine as a negative for Altium, seeing as the company has a presence in Russia and research and development staff in Ukraine. However, Bell Potter notes that Russia only represents “1%-2% of Altium’s revenue”, and also highlights that the company has moved its Ukraine-based staff to Poland.

It also doesn’t expect that the recently announced strategic partnership between Altium’s competitors Cadence Design Systems and Dassault Systèmes will prove to be much of a headwind either. The broker notes that these two companies don’t really compete in the same space as Altium, so investors don’t have much to fret over.

As a result, Bell Potter is expecting strong profit growth from Altium going forward and thus sees the company as undervalued today.

If the broker’s opinion regarding the Altium share price proves accurate, it would imply a potential upside of almost 25% over the next year.

No doubt that will be music to Altium investors’ ears.

In the meantime, the current Altium share price gives this ASX 200 tech share a market capitalisation of $4.31 billion. That comes with a dividend yield of 1.27%. 

The post Altium share price: Is it an ASX buy or a falling knife? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why are ASX 200 tech shares having such a dire day?
• ASX 200 midday update: Magellan jumps, tech shares tumble
• Broker says the Altium share price weakness is a buying opportunity
• Is Altium (ASX:ALU) building a reputation as an ASX dividend share?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. 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 Bruce Jackson.

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The Netwealth Group Ltd (ASX: NWL) share price is on course to end the week in the red.

This is despite the tech sector charging higher on Thursday.

At the time of writing, the investment platform provider’s shares are down 2.5% to $12.98.

Why is the Netwealth share price falling?

Investors have been selling down the Netwealth share price following the release of the company’s third quarter update.

For the three months ended 31 March, Netwealth reported a very modest 1.6% or $0.9 billion increase in funds under administration (FUA) to $57.6 billion.

While this is a much slower growth rate than investors have become accustomed to, it is worth highlighting that it is still a relatively positive result given the tough trading conditions it faced during the period.

For example, Netwealth reported negative market movements of $1.7 billion during the period. Take this out of the equation and its quarterly growth would have been ~4.6%, which annualises to 18.4%.

Elsewhere, the company reported quarterly funds under management (FUM) inflows of $0.5 billion, bringing its FUM to $13.8 billion, and a $3 billion year on year lift in its Managed Account balance to $11.7 billion.

Market share growth continues

Another positive, which has failed to boost the Netwealth share price, was news that the company continues to grow its market share.

The release notes that Netwealth continues to lead the industry for FUA net inflows, recording net inflows of $13 billion over the 12 months to 31 December. This led to Netwealth’s market share increase from 4.4% to 5.5% over the period.

This makes it the sixth largest provider based on market share. Though, it still trails fifth positioned Macquarie Group Ltd (ASX: MQG) by some distance. Macquarie currently has an 11.7% market share.

Outlook

Pleasingly, management appears positive on the company’s outlook, noting that its “pipeline and win rate for new business remains very strong across all market segments.”

In light of this, it remains confident the company will exceed its annual FUA inflows guidance of $13.5 billion. This is subject to the timing of client transitions and there being no deterioration in market conditions.

The post Netwealth share price falls after third quarter update disappoints appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
• 7 small-cap ASX shares that have been oversold: Wilsons

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netwealth. The Motley Fool Australia owns and has recommended Netwealth. 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 Bruce Jackson.

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The AGL Energy Limited (ASX: AGL) share price is lifting today amid a new ‘virtual battery’ deal.

The energy producer and retailer has shaken on an agreement that will see it able to virtually charge and discharge Neoen’s Capital Battery. 

That will see AGL mirroring the services of a grid-scale battery for the course of the 7-year agreement.

At the time of writing, the AGL share price is $8.65, 0.93% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.43%. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 1.04%.

Let’s take a closer look at AGL’s latest renewable energy deal.

All you need to know about AGL’s ‘virtual battery’ deal

The AGL share price is in the green amid news it will soon be able to virtually charge and discharge up to 70 megawatts of Neoen’s 100-megawatt Captial Battery.

The deal will see AGL consistently supplying the electricity grid while balancing its customer portfolio.

Construction of the battery kicked off in December. It’s expected to be up and running in the Australian Capital Territory in the first half of 2023.

AGL chief operating officer, Markus Brokhof, said the partnership will help the company’s “orderly and responsible” transition to renewable energy.

“AGL’s energy transition will be powered by innovations like this, bringing flexible capacity into the market and supporting increased investments in renewable energy, allowing us to prioritise customer supply while we make progress towards net zero,” he continued.

Neoen is a French renewable energy producer. It will soon operate grid-scale batteries in 3 out of 5 of the National Energy Market’s states.

Its deal with AGL is said to be “integral” to the development of the Capital Battery.

“Our aim is to strike a balance between meeting Australia’s current and future energy needs while transitioning in a responsible way,” said Brokhof.

AGL share price snapshot

After a disastrous 2021, the AGL share price is on the up this year.

It has gained 37% year to date. Though, it’s still nearly 8% lower than it was this time last year.

The post AGL share price in the green amid ‘virtual battery’ deal appeared first on The Motley Fool Australia.

More reading

• What was the highest ever AGL Energy share price?
• Rain or sunshine for ASX renewable shares in the March quarter?
• Could April be a good month for the AGL share price?
• Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher
• These were the 5 best performing ASX hydrogen shares of the March quarter

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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The Paladin Energy Ltd (ASX: PDN) share price has soared 19% in a week, but how high could it go?

Paladin shares have jumped 19% since the market close on 7 April. They’re currently trading at 95 cents, up 4.4%.

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

How high could the Paladin share price go?

Paladin is planning to explore uranium at the Langer Heinrich mine in Namibia. Uranium prices have helped drive up the Paladin share price recently, but two brokers think it could go higher.

Shaw and Partners recommends Paladin as a buy with a $1.30 price target, The Australian reports. This is nearly 37% more than the current share price.

Commenting on Paladin, Shaw and Partners said:

In our view Paladin is the standout in the sector on a risk-reward basis.

The pathway to production for Langer Heinrich is well-defined and low risk, underpinned by a quality resource and detailed technical work.

Meanwhile, Canaccord Genuity tips the Paladin share price to reach $1.02. This is a 7.3% upside at the time of writing. Canaccord is confident Paladin has the cash to bring Langer Heinrich to production. Paladin recently completed a $200 million capital raise to restart production at the mine.

The price of uranium is up 0.8% to $63.75 a pound, trading economics data reveals. The uranium price has exploded 113% in a year and is currently at its highest level since the Fukushima disaster in 2011.

Valuation snapshot

The Paladin Energy share price has ascended 131% in the past year. It is up 0.21% year to date.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 24% in a year.

Paladin has a market capitalisation of about $2.7 billion based on the current share price.

The post The Paladin Energy share price has surged 19% in a week. Here’s why these brokers are tipping more gains appeared first on The Motley Fool Australia.

More reading

• New ASX uranium share to hit boards next month and investors are already pouncing
• Paladin Energy share price leaps 10% as uranium prices surge
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why have ASX uranium shares bolted out of the gate today?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 Bruce Jackson.

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