Nexgen Energy Ltd T.NXE

Bank of America

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Head of BofA Global Research Candace Browning highlights a report by analyst Lawson Winder pointing to upside for nuclear power and Cameco,

“Our Metals & Mining strategists think nuclear power and uranium will be key in the energy transition. Uranium spot prices have eclipsed $100/lb., doubling since the start of last year, with potential to overshoot $120/lb. Slower production growth from the world’s largest uranium producer will likely squeeze supply and global demand for nuclear power is expected to ramp quickly as China transitions from coal. Lawson Winder sees more than 20-per-cent upside to Cameco after solid 4Q23 earnings results and strong 2024 guidance. On the other hand, green hydrogen, another potential solution for clean energy, is ramping up slower than hoped. Green hydrogen is produced from renewable energy sources, while blue hydrogen uses natural gas and carbon capture. Alexander Jones notes high production costs and insufficient subsidies are challenges to the green hydrogen industry. Companies exposed to blue hydrogen, like Air Liquide and Johnson Matthey look more attractive”