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Credit Suisse Lifts Uranium One rating to Outperform, Target Price to $4.20

Credit Suisse lifted its rating on Uranium One (UUU.TO) to Outperform from Neutral and its target price to $4.20 from $3.20 on a "good" second quarter result and revised tax outlook.

"UUU has previously stated that its mining operations in Kazakhstan should not be subject to Excess Profit Tax ( EPT ); however, for conservatism (and on the guidance of management), we had continued to factor this into our valuation model and considered EPT a unique and onerous burden to UUU's project cash flows. Based on new and more positive guidance, we have removed EPT from our valuation model, resulting in a 23% increase to NAV to $3.50/share (from $2.84/share). Our TP of C$4.20/share (from C$3.20) is based on a 1.2x our revised NAV of C$3.50/share. Including the minority shareholder dividend of $1.06, our total holding return exceeds 68% (35% without). Our target multiple for UUU is unchanged and in-line relative to its closest peer, Paladin Energy Ltd.," Credit Suisse said in morning note.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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