Sprott and Bank of America boost Uranium ETFs

On Wednesday, Global X Uranium ETF (URA), North Shore Global Uranium Mining ETF (URNM) and Horizons Global Uranium Index ETF (HURA) popped by +7.07%, +8.41% and +5.47% respectively on news that Bank of America (BofA) upgraded Cameco stock, one of the largest Uranium producers, from neutral to buy.

BofA upped its rating on Cameco stock from neutral to buy and raised its price target on the shares to $CA40 (about $32.23). The upgrade boosted Cameco's shares by +8.36% on Wednesday, with a lot of upside left based on BofA's valuation. Adding to the rally, was Sprott's recent 700,000 lbs purchase of physical Uranium. Sprott's Uranium Trust now holds close to 36 million lbs of U308 after a buying spree that started in late August that lifted Uranium prices to $50/lb levels in mid-September.

Cameco's buy rating lifted other Uranium stocks and consequently Uranium ETFs. The stock is now held at high concentration (15-25%) in URA, URNM and HURA along with the number one Uranium producer KazAtomProm (10,706 mt produced in 2020)

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