Energy Fuels (UUUU) Rockets Near 12-Year High as DOE Unveils New Nuclear Program

We recently published 10 Stocks Gaining Double Digits Effortlessly. Energy Fuels Inc. (NYSEAmerican:UUUU) was one of the best performers on Wednesday.

Energy Fuels Inc. (NYSEAmerican:UUUU) soared to a nearly 12-year high on Wednesday, as investors took heart from the Department of Energy’s (DOE) announcement of a new initiative that would support the acceleration of the nuclear sector in the US.

At intra-day trading, the stock soared to its highest price of $27.90 before trimming gains to end the day just up by 14.74 percent at $27.72 apiece.

Photo from Energy Fuels LinkedIn page

The rally was fueled by the DOE’s announcement that it has asked states to host the “Nuclear Lifecycle Innovation Campuses,” which would support activities across the nuclear fuel lifecycle, including recycling used fuel.

Only around 5 percent of the value is used by a nuclear reactor, which means the used fuel has the potential to be recycled. At present, the US does not have commercial-scale uranium recycling in the US.

“Unleashing the next American nuclear renaissance will drive innovation, fuel economic growth, and create good-paying American jobs while delivering the affordable, reliable, and secure energy America needs to power its future,” Energy Secretary Chris Wright said.

The nuclear industry represents 21 percent of US power, but much of the uranium to run the plants are dependent on imports from other countries.

DOE aside, investment firm Roth upgraded Energy Fuels Inc. (NYSEAmerican:UUUU) to “neutral” from “sell” previously, as well as its price target by 19 percent to $15.50 from $13.

Roth said that the upgrade was based on optimism for “near-term catalysts and sentiment” for the company, such as higher uranium spot prices, among others.

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Disclosure: None. This article is originally published at Insider Monkey.