H.C. Wainwright Reiterates Buy Rating on enCore Energy (EU)

H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating and $7.00 price target on enCore Energy (NASDAQ: EU).

The analyst commented: "Although largely irrelevant given the transitional nature of the firm, we note that EU recorded revenue of $9.3M, which yielded a net loss of $17.5M, or ($0.10) per share, during the quarter. These figures compare to no revenue and net income of $9.3M, or ($0.06) per share, during 3Q23. In short, the revenue was based on the sale of 120,000 pounds (lbs) U3O8 to major U.S. nuclear utilities at an average realized sales price of $77.15/lb. In contrast, however, the firm faced higher than anticipated costs of goods sold, totaling $10.6M, surpassing revenue and driving the larger YoY net loss. We stress that the weighted average cost of $88.59/lb does not fully reflect ongoing expenditures and instead is based on expenses from purchased uranium, production-related uranium, and significant non-cash costs, including depletion. We also highlight the company’s increased expenses during the quarter, which included G&A costs of $5.6M ($0.7M in 3Q23), a foreign exchange loss of $1.8M (gain of $1.6M in 3Q23), and an unrealized loss on marketable securities of $1.5M (gain of $7.2M in 3Q23). Finally, enCore maintains a strong balance sheet, which currently holds $46.3M in cash and cash equivalents, $20.6M in marketable securities, and $35.7M in inventories. Reiterate Buy rating and $7 PT."

For an analyst ratings summary and ratings history on enCore Energy click here. For more ratings news on enCore Energy click here.

Shares of enCore Energy closed at $3.78 yesterday.

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