Raymond James favors Cameco, Nexgen among uranium miners, raises PTs

Sprott Physical Uranium Trust

20/04/2020 13:32

** Raymond James says it favors uranium companies Cameco
 CCO.TO , Nexgen Energy  NXE.TO  and Uranium Participation
 U.TO  as prices for commodity, though low, have been increasing
    ** Raises PT on CCO to C$16 from C$14.50 and UPC to C$6 from
C$5.50 to reflect higher near-term uranium prices; increases NXE
to C$3.75 from C$3.50 to reflect year-end results
    ** Supply outlook has tightened due to extended shutdown at
Cigar Lake mine in Canada, which represents more than 10% of
primary uranium production; as a result, brokerage raises 2020
uranium price forecast to ~$33/lb from $30/lb 
    ** Brokerage also increases PT for majority of its gold
coverage and upgrades Royal Gold  RGLD.O  to "outperform" from
"market perform"
    ** Additionally, brokerage says it expects higher q/q gold
price to support stronger financial results for producers
compared to base metals producers
    ** Overall, Raymond James expects there to be less focus on
quarterly results and more on company outlooks; it expects broad
reductions to capex and exploration budgets due to COVID-19
restrictions    

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext:
2776; Reuters Messaging:
arundhati.sarkar.thomsonreuters.com@reuters.net))