Prior to the open of today's trading session, Energy Fuels (UUUU 9.22%) stock had logged three consecutive days of climbing higher. And it seems poised to extend the streak today, with shares of the uranium and rare earths stock soaring at the market's open due to an analyst's bullish take on the stock, as well as news from China regarding rare earths.
As of 10:43 a.m. ET, shares of Energy Fuels are up 11.4%.
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Two factors are fueling the stock's rise
Recognizing the potential for Energy Fuels stock to soar well beyond its recent gain, B. Riley hiked its price target to $22 from $11 and maintained a buy rating. While the firm's bullish action was reported yesterday, it's apparent that it continues to fuel investors' interest in clicking the buy button on Energy Fuels stock today.
The second catalyst affecting Energy Fuels stock today is news that China placed export restrictions on rare earths yesterday. According to research from The Motley Fool, China is the world's predominant producer of rare earths, so its decision to restrict exports is notable.
Energy Fuels is currently developing rare earth separation capabilities, which will increase annual neodymium-praseodymium (rare earth elements) production to 4,000 to 6,000 metric tons.
Is it too late to power one's portfolio with Energy Fuels stock now?
Between its uranium production and its rare earths operations, Energy Fuels provides a one-stop shop for investors seeking exposure to two popular investing areas right now: nuclear energy and rare earths. It's important for potential investors to recognize, however, that the company has failed to report consistent profitability. Because of this, Energy Fuels stock should only be a potential buy for those comfortable with an investment that represents a higher degree of risk.
