Inside the Market’s roundup of some of today’s key analyst actions
After Great-West Lifeco Inc. (GWO-T) posted better-than-expected fourth-quarter results, TD Cowen analyst Mario Mendonca sees its personal wealth strategy south of the border working effectively, leading him to raise his forecast and upgrade his recommendation for its shares to “buy” from “hold” previously.
“Empower delivered strong results, supported by markets & synergies from the Pru deal,” he said. “Net plan flows were good, but net participant outflows remained high (strong markets continue to drive higher withdrawals). Personal Wealth delivered very strong net flows, validating GWO’s rollover strategy. Momentum at Empower and GWO’s lower risk profile (important at this time) support upgrading to BUY.”
“GWO reported Q4/24 base EPS of $1.20, up 15 per cent year-over-year reflecting strong growth in net fee/ spread income at Empower (record results), better credit experience (lower charge), and strong growth in earnings on surplus (higher rates), partially offset by lower insurance experience gains. EPS was better than our forecast of $1.14 (cons. $1.14), mostly reflecting a lower effective tax rate (added approximately $0.04/share), but also slightly better experience. U.S. catastrophe losses had no impact.”
Mr. Mendonca emphasized the gains made by the Winnipeg-based company’s U.S. subsidiary Empower, particularly in personal wealth, seeing its “rollover strategy is gaining significant momentum with AUA [assets under administration] up 29 per cent year-over-year.”
“European top line was strong in WM with net flows benefiting from the rebalancing by large institutional clients,” he said. “In Canada, the acquisitions and markets supported AUA growth, but individual WM flows remained negative. Insurance sales were up 6 per cent year-over-year”
With its return on equity exceeding his expectations and calling its earnings quality “good,” Mr. Mendonca raised his estimates by 4-9 per cent “mostly reflecting stronger net fee/spread income at Empower, including strong AUA growth at Personal Wealth.”
Upgrading his rating on “stronger ROE outlook, accelerated asset gathering at Personal Wealth and, importantly, GWO’s lower risk profile in period of uncertainty,” he raised his target for its shares to $53 from $49. The average target on the Street is $52.44, according to LSEG data.
Elsewhere, National Bank Financial’s Gabriel Dechaine raised his target to $53 from $51, keeping a “sector perform” rating.
“The U.S. segment delivered 37-per-cent base earnings growth,” he said. “This performance reflected the full achievement of Prudential acquisition synergies (vs. 44 per cent in the prior year), along with improvement in credit performance (i.e., $23-million year-over-year, or 29-per-cent contribution to pre-tax earnings growth). Separately, though the Empower AUA levels were still challenged by net outflows, they were materially lower on a sequential basis (i.e., $8.3-billion from $13.7-billion).”
=====
Seeing Canadian Tire Corp. Ltd. (CTC.A-T) continuing to face a “tough” macroeconomic environment, Scotia Capital analyst John Zamparo assume coverage with a “sector underperform” recommendation on Thursday.
“CTC is among the best-performing consumer stocks over the past six months (up 14 per cent) and year-to-date (up 6 per cent), as investors have preferred discretionary over staples,” he said. “To an extent, this has been justified, as CTC soundly beat consensus estimates for three straight quarters. At this stage, however, we see more risks than opportunities: (1) tariffs may be paused for now, but we expect a replay in a month’s time; (2) macroeconomic conditions are subpar, with credit metrics and most consumer sentiment indices weak/worsening; (3) CTC’s decision to keep full ownership of the bank removes a key catalyst, and we see no other obvious ones near term; and (4) valuation at 11.5 times P/E exceeds CTC’s five-year average. We commend CTC’s recent performance but currently believe downside is more likely than upside.”
Mr. Zamparo’s investment thesis revolves around his view of a broader “cloudy” economic picture, emphasizing he remains “cautious on consumers’ financial health.”
While some data – unemployment, disposable income growth, consumer spending – look adequate, the direction of most data is worsening, particularly credit metrics. Importantly, consumer sentiment measures are mostly negative,” he said. “Most crucially, ongoing fears of a retaliatory trade war with the United States add risk of deterioration, perhaps materially, and that is especially relevant to big-ticket discretionary retailers.”
The analyst also sees the company’s decision to maintain full ownership of its financial services business following a strategic review late last year as removing a potential positive catalyst for investors.
“We believe CTC need not own its banking business to further its Triangle goals,” he said. “An outright sale could have simplified CTC and re-rated the retail business higher. Even a suboptimal valuation could have generated ~$3 billion to invest in Triangle and repurchase up to 20 per cent of the stock. We struggle to foresee another positive catalyst near-term – a sale of CT REIT holdings or a sharp turn upward in the economic outlook seems unlikely to us.”
Pointing to a “healthy valuation versus the best of times,” Mr. Zamparo set a target of $140 per share. The current average is $164.09
“We value CTC on a P/E basis (approximately 10.5 times 2025 estimates),” he explained. “In the ‘golden age’ for consumer stocks, which we define as June 2020 to February 2022, CTC traded only a half-turn above where it does now, but with 40 per cent higher EPS due to spendthrift consumers. An undiscounted sum-of-the-parts – 6 times retail EBITDA, 9 times CTFS EPS, and CT REIT’s market value – yields $155 per share. We apply a 10-per-cent discount to reflect business complexity. The 4.4-per-cent dividend yield will appeal to income-oriented investors.”
=====
National Bank Financial analyst Maxim Sytchev sees shares of Finning International Inc. (FTT-T) as “undervalued versus intrinsic value,” reaffirming a “constructive” stance on the Vancouver-based heavy equipment dealer and believing “end-market demand is resilient while a significantly leaner cost structure supports margins.”
“We have been fielding lots of mostly concerned questions heading into the quarter around Product Support, tariffs, and peak margins (we are already modeling an EPS decline in 2025E),” he said. “We came away from the call feeling more confident about the SG&A efficiency opportunity, PS [Product Support] growth in Canada (more positive vs. MD&A language), a free Argentina option, and potential (eventual) upside from accelerated schedules of major B.C. projects that could really help the construction vertical in Canada. Overall, shares are undervalued vs. intrinsic value.”
Finning shares soared 12.6 per cent on Wednesday after it reported fourth-quarter net revenue of $2.58-billion, exceeding the expectations of the Street ($2.49-billion) and Mr. Sytchev ($2.5-billion) by 4 per cent. Adjusted EBITDA came in at $318-milion, which is a 6-per-cent beat on the Street ($301-million) and topped the analyst’s $307-million projection. Adjusted earnings per share of $1.02 was also better than anticipated (87 cents and 93 cents, respectively).
“Results were conclusively better than our (and consensus) expectations, and we believe revenue visibility has improved significantly with a 14-per-cent quarter-over-quarter improvement in the backlog on higher mining and construction orders despite the mixed macro outlook,” he said. “Equally importantly, a higher installed machine population base should support PS growth (in the near term, should be anchored by rebuilds). Data centre demand also continues to be strong, benefiting the Power Systems business (now a significant 33 per cent of the total $2.6-bilion backlog). Copper-driven LatAm growth is also promising, with 350 net new technician hires despite challenges in attracting and retaining talent (though Finning is an employer of choice in the region). While Rentals demand is still seeing somewhat softer utilization amid improved availability and normalizing pricing for new and used equipment, management remains committed to the vertical (year-over-year investment in the fleet should increase) and sees significant opportunities for market share gains. Reassuringly, management has also not noticed any major shifts in client behaviour in light of ongoing rhetoric around potential tariffs.”
Seeing operating cost base as “significantly leaner versus prior cycles” and emphasizing a rebound in Product Support is “critical for the investment thesis,” Mr. Sytchev raised his target by $1 to $49 with an “outperform” rating (unchanged). The average target on the Street is $49.22.
“Our overall estimates and growth targets for next year are more or less intact, as we anticipate muted growth in the next two years with PS anticipated to grow 3 per cent and 1 per cent respectively for 2025/2026,” he said. “Our overall top line assumes muted growth next year and a decrease in margin as more New + Used equipment will be part of the mix vs. higher margin rentals and PS that are seeing sluggish growth, especially in Canada. However, perhaps we are overly cautious, especially in light of management’s conference call commentary around upside to our estimates from further SG&A reductions and PS growth resumption in Canada. Another positive is that as inventory and working capital unwind, we should assume another solid FCF year in 2025; enabling the co to buy back stock, lower leverage and by extension help support EPS.”
Elsewhere, other analysts making target revisions include:
* TD Cowen’s Cherilyn Radbourne to $47 from $45 with a “buy” rating.
“Finning’s Q4/24 results were encouraging,” she said. “The backlog is a near-record $2.6-billuib, based on strong order intake in South America (mining) and the U.K./Ireland (power systems). Product support activity in Canada seems to have stabilized and a new regional leader is looking to selectively implement recent learnings from the U.K./Ireland to improve cost/capital efficiency.”
* RBC’s Sabahat Khan to $49 from $46 with an “outperform” rating.
“Q4 earnings were above consensus expectations, with solid EBIT contribution from South America and U.K. & Ireland while Canada segment was in line,” he said. “Overall, the outlook is largely unchanged, with continued strong trends in South America and the company focusing on optimizing the Canadian business. The business appears to be well positioned in 2025, with potential for upside to our forecasts if the Product Support mix improves year-over-year.”
* BMO’s Devin Dodge to $50 from $45 with an “outperform” rating.
“We believe FTT offers a compelling risk/reward underpinned by improved execution, exposure to regions (South America) and end markets (mining, power) with strong demand prospects, market share growth opportunities, capital deployment flexibility, and a valuation discount vs. peers that appears stretched,” he said.
* Scotia’s Jonathan Goldman to $48 from $47 with a “sector outperform” rating.
Following the 4Q results and earnings call commentary we think earnings risk has flipped to the upside. We were already modeling a flat scenario in Canada, consistent with the published outlook, but management struck a confident tone around potential product support growth in 2025,” said Mr. Goldman. “To be sure, oil sands customers are still flexing their austerity muscles, but start of year budget resets typically lead to more normalized spending behaviour and the comps ease further in 1H25. And South America is backfilling temporary Canada softness. Mining wins in 2Q should convert to product support in 2025, while copper prices continue to rise (historical correlation with FTT shares is more than 70 per cent). The backlog increased 14 per cent quarter-over-quarter in 4Q and the company added 350 net new technicians in 2024, which we view as the best leading indicators of equipment and product support demand.”
* Canaccord Genuity’s Yuri Lynk to $55 from $51 with a “buy” rating.
* CIBC’s Krista Friesen to $50 from $49 with an “outperformer” rating.
=====
Ahead of fourth-quarter earnings season for Canadian base metals companies, TD Cowen analyst Craig Hutchison emphasized U.S. tariffs on China loom large over the sector.
“While the U.S. has paused the proposed 25-per-cent tariffs on Canada and Mexico for 30 days, a 10-per-cent increased tariff on China became effective on February 4,” he said. “According to the White House, a call between President Trump and President Xi is expected to happen later this week, with the potential to deescalate the situation similar to Canada and Mexico. China is the single most significant driver of base metal demand globally and the tariffs exert renewed pressure on an already tepid Chinese economic outlook, in our view. Furthermore, China has already announced retaliatory measures against the U.S. (scheduled to commence February 10, at the time of writing), which could drive up costs and further dampen demand from the Chinese consumer.
“For the most part, our coverage universe is expected to be minimally affected from potential tariffs on Canada or Mexico as most companies sell their production to international markets outside the U.S. Notwithstanding the enforcement of tariffs, which could drive up input costs modestly, we expect mining related inflation to be up 3-5 per cent this year based on company feedback.”
Mr. Hutchison updated his estimates to also include “slightly” lower copper and uranium price forecasts, which led to largely reduced expectations and “modest” target price adjustments.
“On a positive note, the copper concentrate market remains tight with spot TCs in China dropping below zero for the first time since last September,” he said. “Lower TCs and weaker domestic currencies should be an offset to higher inflation caused by tariffs. Copper demand is expected to grow in the range of 3-4 per cent, versus refined output of more than 4 per cent resulting in modest surpluses. Importantly, production continues to underperform expectations with most companies in our coverage universe missing or falling at the low end of their 2024 guidance keeping the market tight and supporting pricing. Also of note, further Chinese fiscal stimulus is widely expected to be announced in early March via the annual budget presentation. China is committed to its ‘moderately loose’ monetary policy which likely results in further domestic stimulus aimed at the consumer and infrastructure spending, which supports base metal demand.”
Mr. Hutchison reaffirmed his three top picks in the sector:
- Hudbay Minerals Inc. (HBM-T) with a “buy” rating and $15 target, down from $16. The average on the Street is $15.71.
- Cameco Corp. (CCO-T) with a “buy” rating and $91 target (unchanged). Average: $82.36.
- Capstone Copper Corp. (CS-T) with a “buy” rating and a $11 target, down from $13. Average: $12.66.
For large-cap producers, his changes are:
- First Quantum Minerals Ltd. (FM-T, “hold”) to $19 from $18. Average: $21.10.
- Ivanhoe Mines Ltd. (IVN-T, “buy”) to $22 from $24. Average: $24.30.
- Lundin Mining Corp. (LUN-T, “hold”) to $13 from $15. Average: $16.05.
- Teck Resources Ltd. (TECK.B-T, “buy”) to $73 from $76. Average: $71.56.
=====
RBC Dominion Securities analyst Pammi Bir thinks Allied Properties Real Estate Investment Trust (AP.UN-T) is delivering “an operationally confident message,” however he cautions there is still a need for execution.
“Notwithstanding in-line Q4/24 results, we modestly trim our outlook on AP,” he said. “Operationally, emerging signs of stabilization are encouraging, with improving confidence in a return to positive organic NOI growth this year. Still, our earnings outlook is taking another step back on longer leasing timelines and higher net interest costs. As well, nursing the balance sheet back to stronger health will require some precise execution over the next two years.”
After the bell on Tuesday, the Toronto-based REIT revealed fourth-quarter 2024 results that largely fell in line with expectations. Funds from operations per unit of 53 cents, excluding mark-to-market adjustments on unit-based compensation, matched the forecast of both Mr. Bir an the Street but represented a 13-per-cent decline from the same period a year early (61 cents).
“Operating metrics seem to be stabilizing, with Q4 SP NOI at down 0.6 per cent year-over-year (down 2.6 per cent year-to-date), economic occupancy edging up to 85.9 per cent (up 30 basis points quarter over quarter, down 50 basis points year-over-year), and renewal leasing spreads at 2 per cent (2 per cent year-to-date),” he said.”For 2025, AP expects SP NOI growth of 2 per cent from higher rents, cash NOI from completed developments, and higher occupancy, mainly in Montreal and Toronto. Management expressed confidence in reaching its target of at least 90-per-cent economic occupancy by year end, particularly with improving leasing traction, tenants expanding, and prospects with larger space needs. From our lens, 2-per-cent organic growth seems reasonable, but certainly not a given amid a weak economy and elevated vacancy across most markets.”
Seeing “growth on hiatus,” Mr. Bir reduced his own forecast for 2025 and 2026 “with revisions mainly for longer lease-up periods for recent acquisitions/developments and higher net interest costs.” That led him to lower his target for Allied units by $1 to $18 with a “sector perform” recommendation. The average is $18.81.
“In our view, current levels reasonably capture soft near-term earnings growth, an elevated payout ratio, and a balance sheet that’s in the body shop,” he said.
Elsewhere, others making changes include:
* National Bank’s Matt Kornack to $17.50 from $18 with a “sector perform” rating.
“AP’s year-end print was in line with our expectations from both an operating and earnings perspective, with the latter seeing offsetting effects on non-cash interest items, combined with higher G&A,” said Mr. Kornack. “The earnings outlook fell short of street and us, although this looks to be largely timing related on transactions/developments more so than operations as the outlook for 90-per-cent-plus occupancy was ahead of our forecast. Nonetheless, the REIT is highly sensitive to these structural issues given their significant weight relative to overall earnings. Management continues to hold the line on distributions; we think retaining this capital would be better for long-term performance.”
* Desjardins Securities’ Lorne Kalmar to $18 from $19 with a “hold” rating.
“Despite management’s bullish commentary on the near-term outlook for its office portfolio, we have lowered our 2025/26 FFOPU estimates by 3 per cent,” he said. “Our revised forecast calls for FFOPU to decline by 4 per cent year-over-year in 2025 (in line with management’s outlook) and 3 per cent year-over-year in 2026, largely due to the impact of refinancing activity. We would need to see a sustained improvement in office fundamentals and a clear path to FFOPU growth before becoming more constructive on the name.”
* Raymond James’ Brad Sturges to $18 from $19 with a “market perform” rating.
=====
National Bank Financial analyst Zachary Evershed expects to see Boyd Group Services Inc. (BYD-T) benefit from the tailwind of poor winter weather when it reports fourth-quarter 2024 results in mid-March.
“With the mild winter last year having weighed on Q1/24 SSSG [same-store sales growth], we look to precipitation data to drive our estimate revisions,” he said in a report released Thursday. “Analysis of the impact of snowfall on BYD’s SSSG is complex as the effect on collisions is non-linear: more days with fresh snow on the ground yields more collisions per mile driven, but too much at once, and drivers stay off the road and await better conditions. Therefore, rather than rely on a regression analysis of the correlation between inches of snowfall and BYD’s SSSG (which has itself been particularly noisy in the last five years given pandemic effects on both pricing and volumes), we rely on the 2022 East Coast blizzard to interpolate a likely floor for BYD’s SSSG in the last two months of Q4/24 (recall that management indicated Q4 results were in line with Q3′s down 3.5 per cent as of November 5) and into Q1.
“Based on complete data sets from weather stations close to population centers in each State in which Boyd operates, and weighted by the company’s location count in each State, we thus raise our SSSG forecast for Q4/24 to negative 2.5 per cent (was negative 4.0 per cent), which remains in line with Q4 industry readthroughs from paint manufacturers.”
With his negative 2.5-per-cent SSSG estimate, which is less than a 3.8-per-cent drop projected by the Street, Mr. Evershed is forecasting sales of $757.3-million, up 2.3 per cent year-over-year exceeding the consensus of $742.5-million. His adjusted earnings per share expectation is 19 cents, down almost 80 per cent from the same period in the last fiscal year and falling 3 cents lower than his peers.
“We roll our model out another year [2026], reflecting a bounce back in SSSG as consumer behaviour patterns acclimate to a higher inflation environment, coupled with continued margin recovery as Boyd’s scanning & calibration internalization initiative bears fruit and the recent cohort of green/brownfield locations mature and begin positively contributing,” he said.
Maintaining his “outperform” recommendation for Boyd shares, Mr. Evershed raised his target to $275 from $245 alongside his estimate increases. The average is $268.77.
=====
In other analyst actions:
* Seeing limited share price upside potential, TD Cowen’s Graham Ryding downgraded Canaccord Genuity Group Inc. (CF-T) to “hold” from “buy” with a $10 target, down from $12. The average is $11.83.
“Results were below our forecast despite in-line revenue, and compensation being lower than our forecast. Non-compensation expense was elevated (real estate and regulatory compliance is elevated, but not expected to be the run rate). We have lowered our estimates,” he said.
* ATB Capital Markets’ Frederico Gomes upgraded Aurora Cannabis Inc. (ACB-T) to “outperform” from “sector perform” and hiked his target to $11.50 from $8.50, exceeding the $10 average. Others making changes include: TD Cowen’s Derek Lessard to $10 from $9 with a “buy” rating and Canaccord Genuity’s Matt Bottomley to $12.50 from $10 with a “buy” rating.
“Aurora reported positive Q3/FY25 results, highlighted by record profitability and cash flow generation,” said Mr. Gomes. “The 160-per-cent adj. EBITDA beat over consensus was driven by growth in high-margin international medical cannabis sales. In Europe, sales of $26.3-million (adj. gross margin of 71.8 per cent) increased 32 per cent quarter-over-quarter and 160 per cent year-over-year; in Australia, sales of $14.6-million (adj. gross margin of 79.4 per cent) remained flat quarter-over-quarter and increased 60 per cent year-over-year. The growth and profitability from international markets have been impressive, notably over the past two quarters due to Germany (cannabis was removed from the narcotics list on April 1st, 2024) and Australia (acquisition and consolidation of MedReleaf Australia). While growth may not keep the same pace over the following quarters as international revenue is volatile (timing of shipments and product registrations) and the initial step-up in Germany has already materialized, it is clear that Aurora is capitalizing on global opportunities, with further potential growth ahead as international markets expand. Importantly, Aurora’s medical cannabis presence has breadth: it holds the #1 market share position in Canada and #2 in Australia, and was the #2 medical cannabis supplier to each core market of Germany and Poland during Q3/FY25; Aurora also has presence in the UK, France, Switzerland, and New Zealand. All of these markets are expected to grow at healthy rates over the following years. With a net cash balance sheet and a now-stabilized core business generating FCF, we believe that Aurora’s outlook and risk-reward have materially improved; as such, we are upgrading the name to Outperform.”
* After a reduction to its 2025 production guidance and a 6-month delay to the start-up of its copper-gold Skouries Project, CIBC’s Cosmos Chiu cut his target for Eldorado Gold Corp. (EGO-N, ELD-T) to US$23 from US$25 with an “outperformer” rating. Other changes include: TD Cowen’s Steven Green to US$16 from US$17 with a “hold” rating and BMO’s Brian Quast to $27 (Canadian) from $29 with an “outperform” rating. The average is US$20.23.
“Eldorado has a growing production base with Kışladağ and Lamaque as the cornerstone assets. We believe these are attractive assets for their relatively low costs and long mine lives,” said Mr. Green. “The ongoing construction of Skouries presents the largest uncertainty for Eldorado, given the project’s significant capex as well as the company’s, at times, challenging operating history in Greece.”
* Raymond James’ Luke Konschuh initiated coverage of Enterprise Group Inc. (E-T) with an “outperform” rating and $3.75 target, exceeding the $2.35 average.
“While Enterprise has four businesses, there is only one that we think really matters, and that’s Evolution Power; it is the fastest growing and highest return segment with the largest addressable market and that’s where we think most of the incremental value for public equity investors will accrue in the future. In our view, implied market expectations are too conservative, and underestimate potential for value creation,” he said.
* TD Cowen’s David Kwan raised his Sangoma Technologies Corp. (STC-T) target to $14 from $12 with a “buy” rating. The average is $12.06.
“Given the surge in the stock (up 175 per cent in the last year), we think there could be some near-term weakness due to the Q2 miss, F2025 guidance cut, and the delays in getting organic (Services revenue) growth back to the positive side. However, we view weakness as a buying opportunity. We think the valuation (6.2 times EV/EBITDA (C2026E)) and FCF yield (16-per-cent LTM [last 12 months]) are attractive and there are M&A catalysts ahead.”
* CIBC’s Scott Fletcher raised his Stingray Group Inc. (RAY.A-T) target to $11.50, exceeding the $11.25 average, from $11 with an “outperformer” rating., Other changes include: BMO’s Tim Casey to $11 from $10.50 with an “outperform” rating and Desjardins Securities’ Jerome Dubreuil to $11.50 from $10.75 with a “buy” rating.
“RAY continues to exceed the Street’s expectations,” said Mr. Dubreuil. “While the key question from investors has been the sustainability of growth in BC&M [Broadcasting and Commercial Music], management highlighted during the call the significant (and numerous) tailwinds in FAST channels, retail media and in-car entertainment, which suggests growth in these lines of business is no fluke. Meanwhile, radio performance remains surprisingly strong. We have increased our growth and margin forecast due to continued solid execution in this segment.
* TD Cowen’s Menno Hulshof bumped his Suncor Energy Inc. (SU-T) target to $63 from $62 with a “buy” rating.
“SU exited 2024 with a sixth consecutive beat and several asset-level records, although the FFO beat was lower-quality (largely cash-tax driven vs. our estimate),” he said. “We estimate it returned 83 per cent of Q4/24 excess FFF vs. its ‘at or near’ 100-per-cent target. It is tracking comfortably on key 2026 targets (70 per cent of $3.3-billion FFF growth and US$10/bbl WTI breakeven reduction now achieved).”
* Raymond James’ Brian MacArthur initiated coverage of Uranium Royalty Corp. (URC-T) with an “outperform” rating and $4.50 target. The average is $7.10.
“URC is a unique company as the largest publicly traded uranium focused royalty company,” he said. “We believe royalty companies like URC offer equity investors diversified exposure to commodity prices while mitigating downside risk given limited exposure to operating and capital costs. At the same time, upside optionality exists through exploration and asset expansion potential. We also believe the outlook for uranium is positive given the combination of growing uncovered demand (which is a function of consumption plus inventory policy), security of supply concerns given the concentrated supply and current geopolitical situation, long lead times for greenfield production and the fact some greenfield projects would need higher uranium prices, and increased financial interest. URC’s royalty portfolio is focused on uranium assets with lower jurisdictional risk, longer duration, and backed by some strong operators. URC also has a strong balance sheet with investments in physical uranium and cash valued at about $300-million and no debt, but we note it does not currently pay a dividend. Given URC’s high-margin business model, its diversification, near-term growth profile, longer-term optionality, favourable jurisdictional risk, and strong balance sheet, we believe URC offers investors a good way to get lower-risk exposure to uranium.”