Broker says buy the dip on ASX 200 uranium share with 69% upside

Shaw and Partners says this ASX uranium stock is trading at an attractive price point right now.

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ASX 200 uranium share Paladin Energy Ltd (ASX: PDN) sure has exhibited some volatility this year.

Take a look at this chart below.

Created with Highcharts 11.4.3Paladin Energy PriceZoom1M3M6MYTD1Y5Y10YALL1 May 202310 May 2025Zoom ▾Jul '23Oct '23Jan '24Apr '24Jul '24Oct '24Jan '25Apr '25Jul '23Jul '23Jan '24Jan '24Jul '24Jul '24Jan '25Jan '25www.fool.com.au

Paladin Energy shares had a phenomenal run over the 12 months to May this year.

The ASX 200 uranium share soared by 159% to a 52-week peak of $17.98 apiece on 22 May.

Since then, the stock has tumbled on a fluctuating but overall downward path.

Paladin shares hit a new 52-week low of $8.15 on 9 September.

They quickly recovered to trade above $13 per share last month, then began falling again.

The stock is now trading at $9.49 on Tuesday, down 3.4% for the day so far.

So, should you buy the latest dip?

Broker Shaw and Partners has released a note explaining their view.

Time to buy the dip on this ASX 200 uranium share?

Last week, Paladin Energy released its September quarter activities report and cash flow report.

Shaw and Partners described it as a "disappointing" quarter due to commissioning issues at the Langer Heinrich uranium mine in Namibia.

On the day the reports were released, the Paladin Energy share price fell by more than 15%.

Shaw and Partners saw this as an "over-reaction".

According to the note:

It was a disappointing quarter due to commissioning issues at Langer Heinrich.

However, none of the issues appear to be more than run-of-the-mill commissioning issues, and a 15% pullback in the share price is an over-reaction.

Nonetheless, we have downgraded our FY25 EBITDA forecast by 11% as a result of lower assumed production. We have not changed FY26+ forecasts.

We retain our BUY recommendation and view today's pullback as another entry point to what is likely to be a multi-year uranium up-cycle.

Shaw and Partners trimmed its 12-month share price target on Paladin Energy from $16.80 to $16. 

Based on today's share price, this implies a potential upside of 69%.

Shaw and Partners isn't the only broker that is bullish on this ASX 200 uranium share.

Another broker also bullish on Paladin Energy shares

As my colleague James reports, Bell Potter also sees Paladin's recent share price weakness as an opportunity.

 Bell Potter said:

PDN has announced its intention to acquire Athabasca developer, Fission Uranium in an all-scrip deal.

We see this transaction as transformative for PDN, with the potential to make the business a leader in uranium production across two sites and thus alleviating our concerns around future growth.

With the recent pull-back in the stock we see this as an opportunity to gain exposure to a high-quality uranium producer.

Bell Potter has a buy rating on the ASX 200 uranium share and a 12-month target price of $14.40.

This implies a potential upside of 52% for investors who buy Paladin shares today.

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