On Wednesday, Global X Uranium ETF (URA), North Shore Global Uranium Mining ETF (URNM) and Horizons Global Uranium Index ETF (HURA) rose respectively by + 7.07%, + 8.41% and + 5.47% more the announcement that Bank of America (BofA) has changed the stock of Cameco, one of the largest uranium producers, from neutral to buy.
BofA upgraded its rating on Cameco stock and raised its price target on the stock C $ 40 (approx. $ 32.23). The rating upgrade pushed Cameco shares up 8.36% on Wednesday, with strong upside potential given BofA’s valuation. Sprott’s recent purchase of 700,000 pounds of physical uranium has contributed to the recovery. Sprott’s Uranium Trust now holds nearly 36 million pounds of U308 after a spree of purchases that began in late August and pushed uranium prices up to $ 50 a pound in mid-September.
Cameco’s buy note boosted other uranium stocks and therefore uranium ETFs. The title is now held at a high concentration (15-25%) in URA, URNM and HURA, as in the first uranium producer, KazAtomProm (10,706 mt produced in 2020).
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