We Continue To View URRE As An Asset Value Play, Says Roth Capital
In a research note released August 11, Roth Capital analyst Joe Reagor maintained a Buy rating on Uranium Resources (URRE) with a $4.00 price target, following the company’s second-quarter earnings.
Reagor wrote: “The company delivered on its goal of reducing costs during the quarter, showing a burn rate of only $1.1 million per month. We continue to view URRE as an asset value play based on our sum-of-the-parts analysis.” The analyst added, “URRE’s cost reductions are clearly taking hold as the company’s cash balance declined only $3.2 million, excluding the $3 million drawn on its credit facility. Additionally, URRE announced it achieved its goal of reducing its cash burn rate to under $1 million per month during July. Management is clearly working to limit nonessential spending while the uranium prices remain suppressed, in our view.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Reagor has a total average return of 7.6% and a 62.5% success rate. Reagor has a -0.9% average return when recommending URRE, and is ranked #1125 out of 3219 analysts.