Yellow Cake (LON:YCA) Shares Up 2.2% - Here's Why

Key Points

• Yellow Cake shares rose 2.2% to GBX 609.50 on Wednesday (intraday high GBX 617.50) on light volume of 1,213,549 shares, down about 81% from the average session volume.
• Analysts hold an overall "Buy" consensus with an average target of GBX 666.80, following recent price-targets from GBX 630 to GBX 704 by firms including Canaccord, Citigroup, Berenberg and Panmure Gordon.
• Yellow Cake offers direct exposure to the uranium spot price by buying and holding U3O8, backed by a ten-year Framework Agreement with Kazatomprom, and has a market cap of £1.54 billion with a negative P/E of -152.38.

Yellow Cake plc (LON:YCA - Get Free Report)'s share price traded up 2.2% during trading on Wednesday . The stock traded as high as GBX 617.50 and last traded at GBX 609.50. 1,213,549 shares were traded during trading, a decline of 81% from the average session volume of 6,529,032 shares. The stock had previously closed at GBX 596.50.

Analysts Set New Price Targets

Several equities analysts have weighed in on YCA shares. Canaccord Genuity Group reduced their price target on Yellow Cake from GBX 695 to GBX 680 and set a "buy" rating for the company in a research report on Thursday, December 4th. Citigroup raised their price objective on Yellow Cake from GBX 670 to GBX 700 and gave the company a "buy" rating in a research note on Thursday, January 15th. Berenberg Bank restated a "buy" rating and issued a GBX 704 target price on shares of Yellow Cake in a report on Thursday, January 22nd. Finally, Panmure Gordon raised Yellow Cake to a "buy" rating and upped their target price for the stock from GBX 550 to GBX 630 in a research report on Tuesday, December 2nd. Five research analysts have rated the stock with a Buy rating, According to MarketBeat, Yellow Cake currently has an average rating of "Buy" and an average target price of GBX 666.80.

Yellow Cake Stock Performance

The firm has a market capitalization of £1.54 billion, a price-to-earnings ratio of -152.38 and a beta of 0.26. The business's 50 day moving average is GBX 629.35 and its 200-day moving average is GBX 586.90.

Yellow Cake Company Profile

Yellow Cake is a London-quoted company, incorporated in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding U3O8. It may also seek to add value through other uranium-related activities. Yellow Cake and its wholly owned subsidiary (the "Group") seek to generate returns for shareholders through the appreciation of the value of its holding of U3O8 and its other uranium-related activities in a rising uranium price environment. The business is differentiated from its peers by its ten-year Framework Agreement for the supply of U3O8 with Kazatomprom, the world's largest uranium producer.

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