Why Ur-Energy Stock Popped Today

Yahoo Finance ·

U-Energy ( URG +4.30% ) stock jumped 5.1% through 12:25 p.m. ET Tuesday after RBC Capital analyst Andrew Wong initiated coverage of the Littleton, Colo.-based uranium miner with an outperform rating and a $1.75 per share price target. Wong is optimistic about the resurgence in nuclear power use in the U.S. -- and arguably even more optimistic about the rising need for reliable sources of uranium to fuel it. As a U.S.-based uranium producer, Ur-Energy offers a pure-play opportunity to bet on both. Ur-Energy operates a "capital-efficient, hub-and-spoke" business model, says the analyst, and benefits from growing U.S. government support for domestic uranium production (so we don't have to buy so much uranium from Russia, with whom we're currently not on such friendly terms).

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URG stock rose 5.1% to $1.75 a share as RBC Capital's Andrew Wong initiated coverage on U-Energy with an outperform rating and a target price of $1.75.

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U-Energy provides pure-play opportunity for uranium production in the US, with RBC Capital's Andrew Wong optimistic about the resurgence in US nuclear power and the potential for U-Energy to become a trusted source of uranium supply in the US.

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