[ad_1]
Uranium Energy is set to rally as the U.S. focuses on securing domestic fuel supplies to meet President Donald Trump’s goal to quadruple nuclear power by 2050, according to BMO Capital Markets. BMO initiated coverage of Uranium Energy on Tuesday with a buy rating and setting a stock price target of $7.75 per share, implying 36% upside from the company’s most recent close of $5.69. BMO’s decision to cover the uranium miner comes after Trump issued a series of executive orders on May 23 to reinvigorate nuclear power in the U.S., including a push to strengthen the domestic uranium supply chain. UEC is set to become the largest producer in the U.S. of uranium concentrate, the raw material for nuclear fuel, BMO analyst Alexander Pearce told clients. UEC 6M mountain Uranium Energy stock over the past six months. “With a marketing strategy that is intended to realise uranium prices close to spot, shareholders stand to benefit from our expectations of a rising uranium price environment,” Pearce told clients in a note. UEC owns a sizeable portfolio of uranium assets in Arizona, Canada, New Mexico, Texas and Wyoming, according to BMO. The company is currently ramping up its uranium mining and processing operations at the Powder River Basin in Wyoming. The Wyoming operation is on track to deliver its first shipment of uranium concentrate imminently, with production ramping up to 1.1 million pounds in 2026, according to BMO. Its Texas operation is expected to start production in the middle of 2026. UEC could achieve close to six million pounds of production by 2030, according to BMO. UEC’s pipeline of uranium projects “could become a key contributor to future domestic requirements,” Pearce said. “Indeed, there is potential for a modest premium for U.S. material,” he added. UEC’s stock has gained nearly 16% since Trump’s actions on nuclear power. Its shares are down about 9% this year.
[ad_2]
Source link
