Goldman Sachs analyst Brian K. Lee reiterated a Buy rating on Uranium Energy yesterday and set a price target of $16.00.
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Brian K. Lee has given his Buy rating due to a combination of factors that highlight Uranium Energy’s strategic initiatives and growth potential. One of the primary reasons is the company’s recent equity offering, which raised approximately $204 million. This capital is intended to expedite the development of a new uranium refining and conversion facility, positioning Uranium Energy as the first fully integrated U.S. company with capabilities across mining, processing, refining, and conversion.
Additionally, the establishment of the United States Uranium Refining & Conversion Corp. (UR&C) as a subsidiary underscores the company’s commitment to expanding its operations. The planned facility is expected to have a capacity of 10,000 metric tonnes of uranium, which is significant given the current U.S. demand of 18,000 metric tonnes per year. Based on peer conversion supplier economics, this facility could potentially generate an EBITDA uplift of $80 million to $100 million, reflecting a promising financial outlook for Uranium Energy.
In another report released on September 25, Roth MKM also maintained a Buy rating on the stock with a $16.00 price target.
UEC’s price has also changed dramatically for the past six months – from $4.450 to $13.210, which is a 196.85% increase.