UR-Energy (URG) PT Lowered to $2.60 at H.C. Wainwright

H.C. Wainwright analyst Heiko Ihle lowered the price target on UR-Energy (NYSE: URG) to $2.60 (from $2.70) while maintaining a Buy rating.

The analyst commented: "During the quarter, the company recorded revenue of $6.3M, which yielded a (largely irrelevant) net loss of $27.5M, or ($0.07) per share. Results compare to 3Q24 revenue of $6.4M, which returned a net loss of $8.0M, or ($0.02) per share. In short, the firm's uranium revenue was driven by the sale of 110,000 pounds (lbs) U3O8 from its purchased inventory at an average sales price of $57.48/lb. In contrast, however, the sale resulted in a gross loss for the quarter since URG's cost of purchased pounds ($64.21/lb) exceeded the average sales price. Importantly, we believe that the use of purchased inventories should ultimately protect and maximize the value of the firm's low-cost product in the longer-term. In short, the loss on purchased pounds matters little to us, as the sale of produced pounds in 2Q25 generated a 19% gross margin, which provides for a more accurate reflection of the firm’s earnings potential once operations are fully de-risked. We reiterate our Buy rating on URG even as we slightly decrease our PT to $2.60 from $2.70. Our decreased PT is driven by slight dilution incurred by the firm at a price below our NAV/share."

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