BMO Capital downgrades Uranium Energy stock rating despite raising price target

Published 25/09/2025, 09:22
BMO Capital downgrades Uranium Energy stock rating despite raising price target

Investing.com - BMO Capital downgraded Uranium Energy Corp (NYSE:UEC) from Outperform to Market Perform on Thursday while simultaneously raising its price target to $14.00 from $7.75. According to InvestingPro data, the stock is currently trading near its 52-week high of $15.05.

The research firm cited UEC’s exceptional recent performance as a key factor in the rating change, noting the stock has surged approximately 140% since early June, making it the best performer in BMO’s coverage universe during the last quarter. The stock has delivered impressive returns across multiple timeframes, with a 157% gain over the past six months and a 113% return over the last year.

BMO Capital acknowledged that sentiment in the uranium sector continues to improve, particularly for U.S. domestic producers, with UEC offering attractive mid-term growth potential to meet increasing demand. The company maintains a strong financial position, holding more cash than debt on its balance sheet and maintaining a healthy current ratio of 8.85.Discover more insights about UEC and 1,400+ other stocks with InvestingPro’s comprehensive research reports and real-time analysis.

The firm also recognized several potential near-term catalysts for UEC, including possibly favorable U.S. policy developments that could benefit the company.

Despite the positive outlook, BMO believes UEC is now fairly valued at a price-to-net present value (P/NPV) ratio of 2.3x compared to its peers, prompting the downgrade while still maintaining a price target that represents an 81% increase from its previous target.

In other recent news, Uranium Energy Corp reported its fourth-quarter earnings for 2025, which did not meet analysts’ expectations. The company recorded an earnings per share of -$0.20, while analysts had predicted a slightly smaller loss of -$0.18. Additionally, Uranium Energy’s revenue for the quarter was $66.84 million, falling short of the anticipated $77.2 million. These financial results highlight a challenging quarter for the company. The earnings report did not include any major announcements regarding mergers or acquisitions. There were also no significant updates about analyst upgrades or downgrades following the earnings release. Investors may be closely watching how Uranium Energy addresses these financial challenges in the coming quarters.

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