Uranium Royalty Corp: Canaccord Lifts Price Target To $4.25

Uranium Royalty Corp (TSXV: URC) recently closed their C$37 million financing, allowing Canaccord Genuity to upgrade their price target from C$3.15 to C$4.25 while reiterating their Speculative Buy rating.

The company only has three analysts who cover the name, with a weighted 12-month price target of $4.20, a 9% upside. Two analysts have strong buy ratings while one analyst has a buy rating. The street high comes from Paradigm Capital with a C$4.75 price target and the lowest comes from H.C Wainwright with a C$3.60 price target.

Katie Lachapelle, Canaccord’s analyst says that Uranium Royalty is now cashed up and ready to execute. After the close of this raise, the company now has C$70 million in cash and equity investments. She writes, “URC is well-positioned to execute on future royalty, stream, and physical uranium transactions, building on its momentum year-to-date.” She calls Uranium the “only pure-play uranium royalty company,” and believes because of its uniqueness, it is positioned well to be a prime lender to uranium developers.

Canaccord recently upgraded their outlook on the uranium market and believe that its a, “hugely 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 provide strong demand tailwinds for the smaller companies which will push the spot price up to U$60/lb.

Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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