Uranium Royalty Corp (TSXV: URC) recently closed its C $ 37 million financing, allowing Canaccord Genuity to raise its price target from C $ 3.15 to C $ 4.25 while reiterating its speculative buy rating.
The company has just three analysts covering the name, with a 12-month weighted price target of $ 4.20, up 9%. Two analysts have high buy ratings while one analyst has a buy rating. The top of the street is from Paradigm Capital with a target price of C $ 4.75 and the lowest is from HC Wainwright with a target price of C $ 3.60.
Canaccord analyst Katie Lachapelle says Uranium Royalty is now cashed and ready to be executed. After this increase closes, the company now has C $ 70 million in cash and stocks. She writes: “URC is well positioned to execute future royalty, stream and physical uranium transactions, building on its momentum since the start of the year.” It calls Uranium “the only pure-play uranium royalty company” and believes that its uniqueness makes it well positioned to be a premier lender to uranium developers.
Canaccord recently improved its outlook on the uranium market and believes it is “an extremely strategic metal whose value in a carbon-constrained world will only increase.” They believe that the current market leaders are under significant macro and micro pressures, which will lead to strong demand for small businesses, which will push the spot price to U $ 60 / lb.
Information for this briefing was found through Sedar and Refinitiv. The author has no title or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author does not hold any license.