Roth MKM raises PT on uranium producers on higher pricing

Energy Fuels

23/10/2024 12:28

** Brokerage Roth MKM raises price targets on uranium
companies on higher pricing and steady demand growth in the
years ahead
    ** Says countries are racing to secure future sources of
uranium and uranium enrichment, which has resulted in a
competitive backdrop for uranium pricing
    ** Adds that the China-Kazatomprom uranium purchase
agreement, pending shareholder approval, could limit the uranium
supply available for the U.S. 
    ** U.S. govt's ban on Russian enriched uranium imports, with
exceptions until 2028, leaves no domestic alternatives until at
least 2029
    ** "Most recent event impacting the uranium industry has
been commitments from hyperscalers (big tech cos) to the small
modular reactor (SMR) and nuclear industry" - Roth
    ** Expects a steady climb in the uranium price through 2025
before potential price stabilization in 2026 or 2027 and sees
uranium prices to avg $90/pound with changes based on the timing
of large mining projects
    Brokerage raises PT of the following firms:
 Company         New PT      Old PT      Rating
 Uranium Energy  $10.25      $9.75       Buy
 Corp  UEC.A                             
 Denison Mines   $2.75       $2.60       Buy
 Corp  DNN.N                             
 Ur-Energy Inc   $2.20       $1.90       Buy
  URG.A                                  
 Energy Fuels    $6          $4.75       Neutral
 Inc  UUUU.A                             
 
 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))