Uranium Energy Corp. (NYSE American: UEC) gained 5% on Monday after Goldman Sachs initiated coverage with a bullish outlook, citing the US government’s efforts to rebuild a domestic nuclear fuel supply chain.
The investment bank set a $13 price target for the stock, implying more than 30% upside from current levels.
The Texas-based pure-play domestic uranium miner has already rallied 34% year-to-date.
The gains come as US policymakers, including the Trump administration, aim to quadruple the nation’s nuclear power capacity to 400 gigawatts by 2050 and significantly expand uranium production within US borders.
US seeks to rebuild domestic Uranium supply chain
According to Goldman Sachs, the US consumes around 29% of the world’s annual uranium supply but produced just 700,000 pounds domestically in 2024.
This reliance on foreign sources has led to renewed calls to establish a secure, domestic uranium supply chain to fuel the nation’s reactors.
Uranium Energy, which operates entirely within the US, is positioned to benefit from these policy goals.
The company plans to scale production to several million pounds over the medium term, a move analysts see as a strategic advantage in a market facing growing demand.
“With nuclear energy demand poised to experience significant growth in the US, we view UEC’s domestic position as a key competitive advantage,” Goldman Sachs analyst Brian Lee wrote in a client note.
Global Uranium shortage looms
The uranium market is already showing signs of strain.
Goldman Sachs projects a global supply deficit of 20 million pounds in 2025, which could expand dramatically to 130 million pounds by 2040 — a shortfall equal to 40% of projected demand.
Rising uranium prices are expected to benefit miners with established operations, particularly those based in the US.
“Uranium Energy is poised to benefit from these policies,” the bank said, highlighting the company’s ability to respond quickly to market shortages.
Goldman’s outlook suggests that UEC could play a central role in meeting US energy goals while capitalizing on broader supply-demand imbalances worldwide.
Potential for US government support
Another factor supporting the bullish view is the possibility of direct US government investment in critical minerals and energy resources.
Earlier this year, the Defense Department purchased a $400 million stake in rare-earth miner MP Materials — a deal that has helped that company’s stock rise more than 380%.
Lee noted that a similar arrangement in the nuclear fuel sector could be a significant catalyst for UEC.
“Given the continued push from the US government to establish a nuclear fuel supply chain, we believe there is some potential that a similar arrangement could be concluded within the nuclear fuel supply chain, which we would view as a positive potential future catalyst for UEC,” he wrote.
As the US accelerates its nuclear energy ambitions and uranium demand outpaces supply, Uranium Energy’s domestic focus and expansion plans place it firmly on Goldman Sachs’ watchlist for growth in the sector.
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