In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on UR-Energy (NYSE MKT: URG), with a price target of $1.50. The company’s shares closed on Friday at $0.70.
Ihle said:
“We highlight the firm’s success in generating positive net income and free cash flow in 2017 and 1Q18, which we highlight were periods during which spot prices averaged $23.75/lb and $21.52/lb, respectively. The firm’s strong results can be attributed to its strategy of fulfilling higher-priced long-term contracts, primarily with lower-priced purchase contracts. We continue to support this strategy given that it should allow the firm to generate positive cash flow and build inventory balances for a higher pricing environment. Positive cash flow generation has also allowed the firm to fund operations internally, while many other firm’s in the industry have been forced to fund operations through less favorable means. Section 232 petition could boost demand for U.S. produced uranium. About 40% of demand for uranium in the U.S.”
According to TipRanks.com, Ihle is a 4-star analyst with an average return of 8.4% and a 48.3% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Americas Silver Corporation, and Golden Star Resources Ltd.
UR-Energy has an analyst consensus of Moderate Buy, with a price target consensus of $1.50.
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UR-Energy’s market cap is currently $103.1M and has a P/E ratio of 70.31. The company has a Price to Book ratio of 2.26.
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Ur-Energy, Inc. is an exploration stage mining company, which engages in the development and exploration of mineral properties. Its portfolio include the Lost Creek uranium project, Shirley Basin mine site, Lost Soldier property, and Lucky Mc Mine site.
