NexGen Energy Offers Strategic Upside in Uranium Sector

Dow Jones
09/21

1104 ET - NexGen Energy offers an attractive risk-reward profile backed by scale, ultra-high grade and low-cost nature of its flagship Rook I project. JPMorgan initiated coverage on NexGen Energy with an overweight rating and a $14 price target. The analysts say that "the portfolio screens favorably in terms of grade (>2% U3O8), scale (>10% market) and jurisdiction (Canada)," and that unlike peers, the project is fully permitted and is well-supported by funding providers. The JPMorgan analysts also says that there are risks to the business, but longer-dated with a current "undemanding" valuation, with the stock up 5% year-to-date at $9.66, "resulting in an attractive risk-reward."

 

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