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PDN: Future Equity Raises Will Support Margins While Keeping Shares Fairly Valued

Analysts Raise Paladin Energy Target on Revenue Growth Despite Margin Pressure and Equity Offerings

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PDN
AnalystConsensusTarget
Not Invested
Published 22 Apr 2025

Update shared on 04 Dec 2025

Fair value Decreased 1.25%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
12.6%
7D
5.7%

Analysts have trimmed their price target for Paladin Energy slightly, from A$9.50 to A$9.38, citing marginally softer long term revenue growth assumptions that are only partly offset by a modest improvement in expected profit margins.

What's in the News

  • Completed a follow on equity offering raising approximately AUD 100 million through the issue of 13.8 million ordinary shares at AUD 7.25 per share (company filing)
  • Filed a separate follow on equity offering for about AUD 20 million, covering 2.8 million ordinary shares at AUD 7.25 per share (company filing)
  • Closed a larger follow on equity transaction totaling roughly AUD 261.4 million, including a subsequent direct listing component with shares priced at AUD 7.25 and AUD 6.66. This reflected a modest discount to market (company filing)
  • Entered into a bought deal private placement with Canaccord Genuity for 4.5 million shares at CAD 6.66 per share, expected to raise CAD 30 million (about AUD 33 million) with closing targeted for September 23, 2025 (company announcement)

Valuation Changes

  • The fair value estimate has edged down slightly, from A$9.50 to A$9.38 per share.
  • The discount rate is unchanged at 6.67 percent, indicating no shift in the risk or cost of capital assumptions.
  • Revenue growth has softened marginally, easing from about 45.62 percent to 45.43 percent.
  • The net profit margin has risen slightly, from roughly 30.71 percent to 30.82 percent, reflecting modestly improved profitability expectations.
  • The future P/E has ticked up minimally, from about 24.77x to 24.84x, suggesting a slightly higher valuation multiple on forward earnings.

Disclaimer

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