BMO Capital raised today Denison Mines (DNN.US) to 'market outperform', leaving shares price target unchanged at 3 CAD vs 2.5 CAD on market (1.9 USD). Recent days are bringing renewed interest in the uranium sector, following the reactivation of the Three Miles Island nuclear power plant, Constellation Energy (CEG.US), the energy from which will be used for the development of AI in Microsoft's (MSFT.US) data centers.
- As a result, the market sees opportunities, with more nuclear power plants opening and higher final demand for uranium ore (U308), which could re-energize the mining sector, as well as spot prices for ore. Recent days have also brought greater analyst interest in stocks, related to uranium
- In BMO's view, Denison offers one of the most attractive price-to-net asset value ratios, at their 0.9 times, with potential catalysts, in the short term. BMO believes that Denison, with a stockpile of 2.2 million pounds of uranium.
- Analysts have assessed that BMO now has one of the strongest balance sheets to finance the Phoenix uranium mining project, with in-situ mining (ISR) technology that can reduce the cost of exploring the deposit and significantly extend its life.
Denison Mines (DNN.US, D1 interval)
The stock broke out above the 200- and 100-session moving averages (EMA) on the daily interval today, signaling an exit from the downtrend.
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