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NexGen Energy surges after JPMorgan initiates Overweight coverage
JPMorgan set a $14 price target for NexGen Energy, implying about 50% upside from Sept. 18’s roughly $9.35 close, after the stock slid about 15% over six months.
NexGen Energy shares climbed about 4% in early trading on Sept. 21 after JPMorgan opened coverage of the Canadian uranium developer with an Overweight rating, according to Yahoo Finance.
The firm said the company’s Rook I project offers scale and grade that stand out versus peers, and noted that the market was not yet fully reflecting the project in the share price.
JPMorgan analyst Bill Peterson set a $14 price target, which implies roughly 50% gains from Sept. 18’s close near $9.35. Peterson also described a disconnect between a broad sell-off in commodity-linked stocks and NexGen’s specific fundamentals, citing favorable grade above 2%, scale above 10% market, and Canada jurisdiction.
According to the coverage summary, Rook I is targeted for a 2030 startup, with design capacity of about 30 million pounds of uranium per year. The report also said licensed construction activities began in June and that NexGen has signed an offtake deal with a major U.S. utility company for one million pounds of uranium.