Goldman Sachs said Uranium Energy stands to gain from the U.S. government’s push to rebuild a domestic nuclear fuel supply chain and boost energy capacity.
Uranium Energy Corp. (UEC) is in the spotlight after Goldman Sachs initiated coverage of the stock, setting a ‘Buy’ rating and establishing a $13 price target, implying a potential upside of more than 30% from current levels.
According to a CNBC report, the move reflects the firm’s assessment that the company stands to gain from the U.S. government’s push to rebuild a domestic nuclear fuel supply chain and boost nuclear energy capacity.
Uranium Energy stock traded over 5% higher on Tuesday afternoon. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘neutral’ territory the previous day amid ‘normal’ message volume levels.
The stock experienced a 1,500% surge in user message count as of Tuesday morning. A bullish Stocktwits user expressed optimism about the company’s business in the context of data center energy needs.
Goldman cited Uranium Energy’s debt-free balance sheet and status as the largest licensed uranium processor in the U.S. as key competitive strengths, as per TheFly. The firm also highlighted UEC’s ability to scale production to several million pounds in the medium term, positioning the company to capitalize on rising demand and constrained supply.
Goldman Sachs said the government’s desire to secure uranium supplies at home works in favor of domestic miners. The firm also pointed to a deficit in uranium supply, providing a catalyst for long-term gains in the sector, according to CNBC.
The company stands out amidst a broader nuclear energy revival, driven by both energy independence goals and rising demand, especially from AI and data center infrastructure.
Uranium Energy stock has gained over 52% year-to-date and over 113% in the last 12 months.
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