Stifel Canada on Wednesday reiterated its buy rating on the shares of Uranium Energy (UEC) and its US$10.50 price target after the company launched a subsidiary aimed at developing a new US conversion facility.

"UEC has launched a new subsidiary to explore the viability of developing a uranium refining and conversion facility in the USA. The proposed plant would convert uranium concentrate (U3O8) into uranium hexafluoride (UF6), a key input for LEU and HALEU production. Initial work began in 2024 in partnership with Fluor, culminating in a recent AACE Class 5 conceptual study, which envisions a facility with capacity of ~10,000 MtU. While still in the early stages, the company has initiated discussions with both federal and state energy authorities. Currently, the US relies on one conversion facility, Honeywell's Metropolis, and foreign sources to meet annual demand. If developed, UR&C could position UEC as the only U.S. firm with vertically integrated capabilities from U3O8 production through to UF6 delivery for enrichment. With that being said it is still early days for this conceptual facility, and we will be watching closely for future updates," analyst Madison Tapscott wrote.

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