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Investing.com - H.C. Wainwright lowered its price target on Energy Fuels (NYSE:UUUU) to $26.75 from $27.50 on Tuesday, while maintaining a Buy rating on the uranium producer’s stock. The revised target still represents a 50% upside from the current price of $17.80, with Energy Fuels trading slightly above its Fair Value according to InvestingPro models. The stock has shown remarkable volatility with a beta of 2.21, reflected in its wide 52-week range of $3.20 to $27.33.
The company reported revenue of $17.7 million in the third quarter, a significant increase from $4.0 million in the same period last year. Despite the revenue growth, Energy Fuels posted a net loss of $17.0 million, or $0.07 per share, compared to a net loss of $12.1 million, or $0.07 per share, in the third quarter of 2024. InvestingPro data shows the company suffers from weak gross profit margins of just 3.25%, contributing to its profitability challenges despite strong revenue growth of 42.73% over the last twelve months.
The revenue surge was primarily driven by uranium sales, with the company selling 240,000 pounds of U3O8 during the quarter. This included 100,000 pounds sold in the spot market at $76.50 per pound and 140,000 pounds through long-term utility contracts at $69.43 per pound.
H.C. Wainwright noted that management continues to take an active approach to monetizing inventory based on contract schedules and market conditions. The firm expects Energy Fuels’ revenue to remain closely tied to the timing of uranium sales while the company works to de-risk its growing rare earth business.
The research firm highlighted Energy Fuels’ strong balance sheet, which included $94.0 million in cash and cash equivalents and $74.4 million in inventories at the end of the quarter, providing sufficient liquidity to advance operations. This financial strength is confirmed by InvestingPro analysis, which notes the company holds more cash than debt and maintains a healthy current ratio of 8.1. For investors seeking deeper insights, InvestingPro offers a comprehensive Research Report on Energy Fuels, one of 1,400+ US equities covered with detailed analysis and actionable intelligence.
In other recent news, Energy Fuels has made significant announcements and received notable attention from analysts. The company plans to offer $550 million in convertible senior notes due 2031, with an option for initial purchasers to buy an additional $82.5 million in notes. These notes will be senior unsecured obligations and are convertible into cash, common shares, or a combination at the company’s discretion. Additionally, H.C. Wainwright has raised its price target for Energy Fuels to $27.50 from $16.25, maintaining a Buy rating after a site visit, which included a tour of the company’s facilities.
Trade tensions between the US and China have impacted the market, with Energy Fuels seeing a 13% rise in premarket trading as China implements additional retaliatory measures against the US shipping industry. Furthermore, the announcement of China’s new restrictions on rare earth exports led to a 4.7% increase in Energy Fuels shares. However, nuclear and uranium stocks, including Energy Fuels, experienced a decline in premarket trading, following previous gains related to comments by President Donald Trump about accelerating large power projects. These developments highlight the dynamic environment in which Energy Fuels is operating.
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