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PDN: Future Multiple Expansion Will Likely Overstate Equity Offering Benefits

Growing Renewables Will Pressure Langer Heinrich Margins And PLS Timelines

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PDN
AnalystLowTarget
Not Invested
Published 22 Aug 2025

Update shared on 18 Dec 2025

Fair value Increased 22%
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AnalystLowTarget's Fair Value
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1Y
17.1%
7D
-3.2%

Analysts have lifted their price target for Paladin Energy by approximately 22 percent to reflect stronger projected revenue growth, slightly higher profit margins, and a rerating to a richer future earnings multiple, despite a modest uptick in the discount rate.

What's in the News

  • Completed a follow-on equity offering raising approximately AUD 100 million, strengthening the balance sheet and funding growth initiatives (company filing)
  • Issued 13,793,200 new ordinary shares, modestly diluting existing shareholders while broadening the investor base (company filing)
  • New shares priced at AUD 7.25 per share, implying institutional demand at only a limited discount to recent trading levels (company filing)
  • Increased free float and trading liquidity are expected to improve the stock's appeal to larger funds and index trackers (company filing)

Valuation Changes

  • Fair Value has risen significantly from 5.20 to 6.37, reflecting a materially more optimistic assessment of intrinsic worth.
  • Discount Rate has increased slightly from 6.57 percent to 6.67 percent, implying a modestly higher required return and risk assumption.
  • Revenue Growth expectations have risen moderately from 33.57 percent to 38.52 percent, pointing to stronger anticipated top line expansion.
  • Net Profit Margin forecast has edged up from 24.64 percent to 25.19 percent, indicating a small improvement in expected profitability.
  • Future P/E multiple has risen significantly from 15.73x to 23.96x, suggesting a richer valuation being applied to projected earnings.

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Disclaimer

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