Energy Fuels stock downgraded to Sell by Roth/MKM as shares outpace fundamentals

Investing.com - Energy Fuels (NYSE:UUUU) was downgraded from Neutral to Sell by Roth/MKM on Wednesday, with the price target raised to $11.50 from $7.25 despite the negative rating change.

The downgrade comes after Energy Fuels shares surged to a high of $27.33 in mid-October 2025, driven by market excitement around rare earth and uranium companies rather than fundamental changes to the company’s assets. InvestingPro data shows the stock has delivered a remarkable 275.5% return over the past six months, though it has recently pulled back 16.6% in the past week.

Roth/MKM had previously downgraded Energy Fuels to Neutral in July 2025 when the stock was trading at $6.51, believing the market value aligned with the fundamental value of its assets at that time.

The research firm maintained its Neutral stance during the recent price surge despite the disconnect between market momentum and fundamentals, noting there were no near-term company-specific catalysts that could force a correction.

With multiple financial studies expected before year-end 2025 or early 2026 and sector momentum peaking several weeks ago, Roth/MKM now recommends investors take profits on the stock, which continues to report losses. According to InvestingPro data, Energy Fuels posted an EBITDA of -$93.11 million over the last twelve months with weak gross margins of just 6.15%. The stock appears slightly overvalued compared to its Fair Value and trades at a high Price/Book multiple of 5.59.Want deeper insights? Energy Fuels is among 1,400+ US stocks with comprehensive Pro Research Reports that transform complex Wall Street data into actionable intelligence. Discover 14 more InvestingPro Tips about UUUU at InvestingPro.

In other recent news, Energy Fuels reported a substantial increase in revenue, reaching $17.7 million in the third quarter compared to $4.0 million in the same period last year. Despite this growth, the company experienced a net loss of $17.0 million, consistent with a loss of $0.07 per share, mirroring last year’s figures. Energy Fuels also announced plans to offer $550 million in convertible senior notes due 2031, with an option for initial purchasers to acquire an additional $82.5 million in notes. These notes will be senior unsecured obligations with semiannual interest payments and convertible under certain conditions. Analyst firm H.C. Wainwright adjusted its price target for Energy Fuels, initially raising it to $27.50 following a site visit and later lowering it to $26.75, while maintaining a Buy rating. Additionally, Energy Fuels’ stock saw gains amid increased trade tensions between the U.S. and China, as China announced new restrictions on rare earth exports. The company’s shares rose 4.7% following China’s announcement.

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