Deep Yellow, Paladin Energy rally as UBS hikes uranium price forecast
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The news: Uranium miners Deep Yellow and Paladin Energy climbed in morning trade as UBS upgraded its near-term uranium prices by about 10%, due to an improved US policy backdrop which has buoyed broader market sentiment.
The numbers: Deep Yellow shares were up 3% to $1.72 while Paladin shares gained 2.3% to $7.66 by 11:30am AEST.
UBS upgraded Paladin's price target 3% to $9.40, and retained its 'buy' rating.
However, fellow uranium miner Boss Energy saw its shares fall 1.7% to $4.31 after UBS increased its price target 6% to $3.50 but downgraded its rating to 'sell'.
UBS analysts said the stock has run "too far, too fast" after rising 81% since the turn of the year.
The context: The analysts said they held a recent call with US think tank The Atlantic Council on the recent raft of policy initiatives aimed at revitalising the US nuclear energy sector.
It led UBS to increase its own uranium demand forecast, with US nuclear energy capacity expected to expand from 100 gigawatts (GW) today to 400GW by 2050, a 100GW uptick previous targets set out by the Biden administration.
The source: UBS research
