Energy Fuels stock target cut to $10.75 at H.C. Wainwright

Published 28/02/2025, 13:54
Energy Fuels stock target cut to $10.75 at H.C. Wainwright

On Friday, H.C. Wainwright adjusted the price target for Energy Fuels (TSX:EFR) (NYSE:UUUU) stock, reducing it to $10.75 from the previous $11.00, while sustaining a Buy rating on the company’s shares. According to InvestingPro data, the stock has declined over 13% in the past week and is currently trading near its 52-week low of $3.99. Analyst targets now range from $5.75 to $11.00. This revision follows the announcement of Energy Fuels’ financial results for the year 2024, which were disclosed on Thursday.

Energy Fuels reported a total revenue of $78.1 million for 2024, resulting in a net loss of $47.8 million, or ($0.28) per share. These figures contrast with the 2023 revenue of $37.9 million and a net income of $99.8 million, or $0.63 per share. InvestingPro analysis shows an impressive revenue growth of 106% year-over-year, with a gross profit margin of 28.4%. The year-over-year revenue increase can be largely attributed to $39.9 million in sales from heavy mineral sand, which accounted for 51% of the annual revenue. This marks a shift from the previous year, where uranium concentrate sales were the primary source of revenue.

The significant alteration in net loss for 2024 was attributed to heightened operating expenses and transaction costs related to strategic acquisitions. Energy Fuels acquired Base Resources (LON:BSE) and entered into the Donald Project joint venture, which expanded its operations. Additionally, the company recognized a gain of $119.3 million from the sale of the Alta Mesa Project, which also influenced the financial outcomes of the year.

Despite the substantial net loss in 2024, H.C. Wainwright analysts remain optimistic about Energy Fuels’ potential for growth in 2025. InvestingPro data reveals strong financial health indicators, with the company holding more cash than debt and maintaining a healthy current ratio of 3.88. The firm anticipates that Energy Fuels will continue to progress, driven by the de-risking and expansion of its operations across its newly enlarged asset base. These developments are expected to contribute to the company’s performance in the coming year. For deeper insights into Energy Fuels’ financial health and growth prospects, including 10+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Energy Fuels has made significant strides with its Toliara Project in Madagascar after the government lifted a suspension that had been in place since November 2019. This development allows the company to resume its activities, focusing on producing titanium and zirconium minerals. Energy Fuels has signed a Memorandum of Understanding with the Republic of Madagascar, which includes terms for the project and a commitment to a 5% royalty on mining products. The agreement also involves a substantial $80 million contribution towards development and social projects. In addition, Energy Fuels has addressed previous concerns by resolving issues with the Navajo Nation and successfully raising capital to support near-term projects. Analysts at Roth/MKM have upgraded Energy Fuels’ stock rating from Neutral to Buy, citing these positive developments and an improved financial position. The analysts have set a new price target of $5.75, reflecting a modest increase. These recent developments indicate that Energy Fuels is on a path to advancing its projects and strengthening its operational foundation.

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