The Globe and Mail reports in its Thursday, July 9, edition that H.C. Wainwright & Co. analyst Heiko Ihle sees a number of catalysts supporting stronger uranium prices, leading him to raise his target price for shares of Fission Uranium (28.5 cents) to 40 cents from 30 cents. The Globe's David Leeder writes in the Eye On Equities column that Mr. Ihle continues to rate Fission Uranium "buy." Analysts on average target the shares at $1.15. Mr. Ihle says in a note: "While uranium spot prices have traded mostly around $25 per pound since early 2016, valuations ultimately picked up in early March, 2020. By April, uranium spot values first exceeded $30/lb and spot prices since then have remained around $33/lb. We believe two key catalysts have supported these higher prices in recent months. In particular, the spread of COVID-19 has caused several top producers to curtail production, while a recent Section 232 investigation has led to the creation of the Nuclear Fuel Working Group that recently recommended the creation of a $1.5-billion Nuclear Supply of domestically produced uranium. ... Looking ahead, we expect the company to complete a share consolidation, in addition to listing the firm on a major exchange."
© 2021 Canjex Publishing Ltd. All rights reserved.