Rob Chang upgrades price target to $4.30new target-$4.30 NexGen Energy Ltd (NXE/TSXV, $1.95) Buy: Target $4.30 Our Top Pick still has Tremendous Upside; Switching valuation to DCF Rob Chang (416) 849-5008, Michael Wichterle (416) 849-5005 EVENT We are switching our valuation for NexGen Energy to a discounted cash flow model from an in-situ valuation. BOTTOM LINE Very Positive Despite our conservative estimates, NXE shows incredible upside due to its size, high grade nature, low-cost basement hosted setting, growth potential, and strong management team. NexGen Energy continues to be our Top Pick for nearly a year and we have a Buy recommendation with an increased target price of $4.30 per share (+76%). FOCUS POINTS Still very cheap Despite our conservative estimates, we calculate a post-tax net present value for Rook I at C$1.3B, with an IRR of 40%, and a payback of 1.7 years. This translates into a per share value of C$4.08. Conservative estimates We went out of our way to be conservative in our estimates for Rook I. In particular, we used a 10% discount rate (8% is common), a USD/CAD rate of US$0.90/CAD (currently it is US$0.76/CAD), and we assume no increases in resource size (which is extremely unlikely given the drilling success that has been reported already). In summary, we believe there is a lot of upside room from our estimates. Arguably the best in the commodity space Since naming it our top pick on June 1, 2015, NXE has gained 268% on the emergence of one of the best deposits we have seen from any commodity. Based on spot prices Arrow translates to a 4.6M oz. gold deposit with an average grade of 41 g/t. #1 Takeout Target Irresistibly large and high grade in a uranium camp. Read more at https://www.stockhouse.com/companies/bullboard/bullboard/v.nxe/nexgen-energy-ltd#vo5f15czglCsDGXf.99