In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on enCore Energy (EU – Research Report), with a price target of $2.75.
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Heiko Ihle’s rating is based on the financial performance and strategic developments at enCore Energy. Despite the company reporting a net loss in the first quarter of 2025, the revenue generated from uranium sales indicates a potential for profitability, especially with the anticipated reduction in cash costs from ongoing wellfield expansions at Alta Mesa. The improvements in wellfield operations, including the installation of advanced software and successful delineation drilling, are expected to enhance efficiency and resource recovery, which supports a positive outlook for the company.
Furthermore, Ihle’s valuation of enCore Energy considers the discounted cash flow of its operations at Rosita Central and Alta Mesa, alongside the potential of its mid- and long-term projects. The valuation also factors in the company’s cash reserves, marketable securities, and shares in Anfield Energy, while accounting for its debt. The expectation of strong demand for U.S.-sourced uranium and favorable market conditions further bolster the Buy rating, with a price target set at $2.75 per share.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EU in relation to earlier this year.