On Thursday, Roth/MKM maintained a Buy rating on shares of UR-Energy (NYSE:URG) but reduced the stock's price target to $2.20 from the previous $2.40. The adjustment follows the company's announcement on Wednesday, March 13, 2024, regarding its plans to develop the Shirley Basin project in Wyoming.
The firm has incorporated the new mine into its future discounted cash flow (DCF) calculations, which has led to a shift in valuation methodology. Previously, a sum of the parts valuation was employed, but this has now been replaced in light of the recent developments and the filing of the Lost Creek technical report.
The updated valuation reflects the firm's expectations for the future financial performance of UR-Energy, factoring in the potential contributions from the Shirley Basin project. Despite the lowered price target, the firm's stance on the stock remains positive, as indicated by the sustained Buy rating.
UR-Energy's decision to advance the Shirley Basin project is a significant step in the company's growth strategy, and the updated technical report for Lost Creek provides additional information on the company's assets and operational plans.
The price target revision to $2.20 from $2.40 is indicative of the firm's revised expectations based on the most recent data available and the inclusion of the new project in the company's portfolio. The Buy rating suggests that the firm still sees value in the stock and anticipates a positive performance going forward.
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