Energy Fuels stock rating downgraded to Neutral by Roth/MKM

Investing.com - Roth/MKM downgraded Energy Fuels (NYSE:UUUU) from Buy to Neutral while raising its price target to $6.00 from $5.75. The stock, currently trading at $6.51, has shown significant momentum with a 5.5% gain in the past week and over 23% return in the last six months.

The research firm cited that Energy Fuels has already reached its revised price target of $6.00, prompting the rating change despite the slight increase in target price. According to InvestingPro analysis, the stock appears fairly valued based on its comprehensive Fair Value model, with 12 additional real-time insights available to subscribers.

Roth/MKM expressed concerns that Energy Fuels is likely to underperform compared to other uranium companies due to its diversification strategy into rare earth elements.

The firm specifically noted that the company’s investment in Astron and plans to expand rare earth processing capabilities at its White Mesa mill could lead to potential equity dilution in upcoming quarters.

Energy Fuels may need to seek additional funding for these initiatives, which could impact shareholder value in the near term, according to the Roth/MKM analysis.

In other recent news, Energy Fuels Inc. (TSX:EFR) has entered into a new equity distribution agreement, terminating a previous one from March 2024. This agreement, established with multiple financial firms including BMO Capital Markets Corp. and Canaccord Genuity LLC, allows Energy Fuels to sell common shares through "at the market offerings." The company has the flexibility to control the timing and amount of sales, with agent compensation capped at 3% of gross proceeds. Additionally, Energy Fuels has released a technical report for its Bullfrog Project in Utah, marking a development step for the project. The report was filed with the Securities and Exchange Commission but did not disclose specific details. In leadership changes, Energy Fuels has appointed Nathan Bennett as the new Chief Financial Officer, effective April 21, 2025. Bennett has been with the company since 2022, previously serving as Chief Accounting Officer and Interim CFO. His prior experience includes significant roles at Antero Midstream (NYSE:AM) Corporation and PricewaterhouseCoopers, LLP.

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