Citi, a global financial giant, has initiated coverage of Australia’s uranium mining company, Paladin Energy (ASX:PDN), providing it with a ‘sell’ rating.

This suggests that Paladin Energy is currently overvalued.

The brokerage has set a price target for the company at A$0.90, which reflects a valuation concern.

Citi believes the current share price reflects a highly optimistic market outlook, overstating the company’s worth.

The situation is further compromised due to uncertainties related to valuation surrounding undeveloped resources in Canada.

Out of seven analysts, five rate the stock ‘buy’ or higher, one ‘hold’ and one ‘sell’.

Their median price target is A$1.23.

Regardless, Paladin Energy’s stock has seen significant growth this year, rising 40.7% as per last closing data.

Paladin Energy (ASX:PDN) is a leading Australian uranium mining company.