Roth Capital Maintains Buy On Uranium Resources Following Asset Exchange With Rio Grande Resources

In a research report issued yesterday, Roth Capital analyst Joe Reagor maintained a Buy rating on Uranium Resources (NASDAQ:URRE) with a price target of $4, following the company’s announcement of an asset exchange agreement with Rio Grande Resources.

Reagor wrote, “Under the terms of the agreement, URRE would acquire Texas properties totaling 8,834 acres in exchange for two parcels from its Rocha Honda asset in New Mexico. The Texas assets are all located within 75 miles of URRE’s existing processing facilities in Texas allowing URRE to bring these assets into production faster than it could Rocha Honda, in our view. We anticipate this will result in a reduction in overall resources for URRE, but we believe the asset locations in Texas are more advantageous. The Texas assets URRE is acquiring have historical resources, which will need to be upgraded to meet NI 43-101 requirements.”

Reagor continued, “We anticipate URRE will show a resource reduction at Rocha Honda, but we expect the additional resources in Texas and locations of these assets to outweigh the resource reduction. As a result, we have elected to make no adjustments to our estimates or valuation. We continue to view URRE as a value opportunity given the significant resources it holds.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joe Reagor has a total average return of 3.5% and a 45.5% success rate. Reagor has a 10.4% average return when recommending URRE, and is ranked #1602 out of 3277 analysts.

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