UUUU stock wins price target raise at Roth

With the spot price of uranium on the move, Roth MKM analyst Joe Reagor has raised his price target on Energy Fuels Inc. (Energy Fuels Inc. Stock Quote, Chart, News, Analysts, Financials NYSE:UUUU).

“Given the current spot price of uranium of over $100 per pound (reported as $103 per pound on January 15, 2024), we believed it was prudent to revise our uranium price forecasts for 2024 and 2025,” the analyst said. “Previously, we believed that the seasonally weak fourth quarter for uranium purchases by utilities would provide a breather for the uranium price rally, but instead, pricing continued to rise as investment funds purchased uranium in a thin spot market. As such, pricing is much higher than we previously anticipated entering 2024. Add in the impact of a potential production shortfall from Kazatomprom, and there is a path for higher uranium prices in the near term, in our view. As such, we increased our 2024 price forecast from $76.25 to $111.25 and our 2025 price forecast from $80.00 to $95.00. However, we continue to believe the price of uranium should peak during 2024.”

In a research update to clients January 23, Reagor maintained his “Buy” rating on UUUU but raised his price target on the stock from $9.25 to $10.50.

The analyst thinks the company will lose $0.23 a share on revenue of $33.8-million in fiscal 2024.

“As a direct result of increasing our uranium price forecasts, we are increasing our price target for UUUU from $9.25 to $10.50,” the analyst concluded. “Additionally, we believe the uranium rally should continue through at least H2 2024 before any meaningful supply response comes to fruition.”

Uranium is key fuel for nuclear reactors and is used in nuclear weapons and in uranium isotopes, which have research and medical uses.