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Investing.com - Raymond James downgraded Uranium Royalty (NASDAQ:UROY) from Outperform to Market Perform on Tuesday. The move comes despite the company’s impressive 108.68% year-to-date return and current market capitalization of $610 million.
The downgrade comes despite Raymond James acknowledging Uranium Royalty’s position as the largest publicly traded, uranium-focused royalty company with a unique business model.
Raymond James noted that royalty companies like Uranium Royalty offer investors diversified exposure to commodity prices while limiting downside risk through reduced exposure to operating and capital costs.
The firm highlighted Uranium Royalty’s portfolio strengths, including its focus on uranium assets with lower jurisdictional risk, longer duration, and backing by strong operators.
Raymond James also pointed to the company’s high-margin business model, diversification, near-term growth profile, longer-term optionality, favorable jurisdictional risk, and strong balance sheet as factors that still make it a good option for investors seeking lower-risk uranium exposure.
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