What Does Raymond James Think About Uranium Royalty (UROY) After Its Sweetwater Merger?

Uranium Royalty Corp. (NASDAQ:UROY) is one of the best uranium stocks to buy according to Wall Street analysts. On April 21, Raymond James analyst Brian MacArthur upgraded Uranium Royalty Corp. (NASDAQ:UROY) from Market Perform to Outperform, and raised his price target to C$6.25 from C$5.75.

The decision followed Uranium Royalty’s announcement the previous week, on April 16, of the merger with Sweetwater Royalties, a privately held land and mineral royalty company in Wyoming. Sweetwater Royalties was owned by Orion Resource Partners and Ontario Teachers’ Pension Plan, who earned about $330 million in cash and $813 million in new Uranium Royalty’s shares at $3.64 per share. Uranium Royalty in return acquired Sweetwater’s core assets, including soda ash (trona) royalties on five operating mines and two greenfield projects in Wyoming’s Green River Basin. MacArthur viewed the merger deal as a transformative development for Uranium Royalty.

Additionally, MacArthur argued that Uranium Royalty’s royalty model is itself quite appealing. Royalty companies like Uranium Royalty give investors broad exposure to uranium price movements while shielding them from the cost risks that come with actually operating mines, the analyst noted.

Beyond the cost-protection advantage, MacArthur also highlighted that Uranium Royalty’s royalty portfolio spans assets in jurisdictions with relatively low political and regulatory risk. He added that these assets are operated by some of the stronger names in the uranium industry, which reduces the chance of project disruptions that could erode royalty income.

Uranium Royalty Corp. (NASDAQ:UROY) is a uranium-focused royalty and streaming company. It acquires and manages royalties, streams, debt interests, and physical uranium investments tied to uranium mining projects globally.

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