In a Feb. 7 research note, ROTH Capital Partners analyst Joe Reagor reported that Uranium Energy Corp. (UEC:NYSE.MKT) is advancing two of its in situ uranium projects, Reno Creek and Burke Hollow, despite continued uncertainty about the Section 132 petition result.
Resolution of that issue is the primary catalyst for the company this year, Reagor highlighted. "We anticipate receiving additional information when a recommendation is made to the [U.S.] president in late Q1/19 or early Q2/19."
Uranium Energy intends to move Reno Creek in Wyoming into the prefeasibility stage, which, Reagor commented, "should provide the company with a clearer picture of the uranium price needed to justify construction." ROTH expects that figure would have to be above $40.
Simultaneously, Reagor noted, the miner is preparing to drill and install monitoring wells at Burke Hollow in Texas later in Q1/19. First, it will place 20 wells in areas of less dense drilling in the past and then follow with 120 more wells across the asset.
ROTH, bullish on the uranium sector and expecting a positive result from the Section 132 petition, maintains a Buy rating and a $3.40 per share price target on Uranium Energy. The company's current share price is around $1.36.[NLINSERT]
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Disclosures from ROTH Capital Partners, Uranium Energy Corp., Flash Note, February 7, 2019
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ROTH makes a market in shares of Uranium Energy Corp. and as such, buys and sells from customers on a principal basis.
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ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.