H C Wainright Increases Buy Target to $0.40 U.S.Heiko F.Ihle CFA,
We reiterate our Buy rating on Fission shares and raise our PT to $0.40 per share from $0.30 per share. Our valuation remains based on a DCF of operations at PLS, to which we now apply a revised 12.0% discount rate, and a long-term uranium price estimate of $35/pound (lb), or about C$48/lb beginning in FY26. Our higher price target is the result of lowering our discount rate to 12.0% from 14.0% based on continued strong uranium prices. We ultimately expect longer-term prices to support the development of PLS. We then add cash and the 32.3Mlbs of Fission's uranium resource at an average value of C$4.50/ lb (prior: $4.00/lb) to account for increases in spot prices. Going forward, we expect management to continue advancing PLS. We reiterate strong uranium spot prices, that have risen in part due to the ongoing spread of COVID-19, which continues to impact global production. Looking ahead, we expect the company to complete a share consolidation, in addition to listing the firm on a major exchange, which could open the company up to a wider demographic of investors.