H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Uranium Royalty Corp (UROY – Research Report) yesterday and set a price target of $4.50.
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Heiko Ihle has given his Buy rating due to a combination of factors that highlight the potential of Uranium Royalty Corp in the current market environment. Despite geopolitical tensions affecting uranium spot prices, Ihle remains confident in the primary market drivers for nuclear power, such as the increasing demand for electricity and the global shift towards decarbonization. These factors are expected to drive favorable pricing power, especially for uranium sourced from stable geopolitical regions, which benefits Uranium Royalty Corp.
Furthermore, Ihle’s valuation of the company is based on a discounted cash flow analysis of its royalty interests, with specific discount rates applied to key assets like Cigar Lake and McArthur River. Although the price target was lowered due to a revised P/NAV multiple reflecting current market conditions, the overall outlook for uranium remains positive. The company’s substantial uranium inventory and its strategic positioning in the market are anticipated to increase in value as demand for nuclear energy grows, reinforcing the Buy rating.