In a Jan. 27 research note, analyst Joe Reagor reported that ROTH Capital Partners raised its target price on Uranium Energy Corp. (UEC:NYSE AMERICAN) to $2.90 per share from $2.40 after the company announced its plan to advance its Burke Hollow uranium project in Texas. The current share price is about $1.67.
"The Burke Hollow advancement is positive," Reagor added.
He explained why and described the 2021 work plan for the project, estimated to cost less than $2 million.
At Burke Hollow this year, Uranium Energy intends to install 45 more monitoring wells and do further exploration and infill drilling. This work, Reagor highlighted, should "bring the project for construction decision." Should the company choose to move forward, construction would take about 12–18 months, the analyst estimated.
Also positive for Uranium Energy, Reagor pointed out, is the recent tailwind behind the uranium sector. New investors interested in companies meeting environmental, social and governance criteria recently have been looking to put their money in nuclear energy supply chain stocks.
Reagor noted that generally those investors believe nuclear power will play a large role in achieving and sustaining carbon neutrality.
"We tend to agree with this view, and thus we believe the increases in valuations are sustainable," he wrote. "UEC is poised to benefit from new investment in the uranium industry."
Those increased valuations throughout the uranium mining space, as well as Uranium Energy's investment in Uranium Royalty Corp., also led to ROTH's target price increase on Uranium Energy.
ROTH has a Buy rating Uranium Energy.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from ROTH Capital Partners, Uranium Energy Corp., Company Note, January 27, 2021
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Within the last twelve months, ROTH has received compensation for investment banking services from Uranium Energy Corp.
ROTH makes a market in shares of Uranium Energy Corp. and as such, buys and sells from customers on a principal basis.
Shares of Uranium Energy Corp. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
Within the last twelve months, ROTH has managed or co-managed a public offering for Uranium Energy Corp.
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.