The bull case for uranium from U.S. nuclear trends - Citi
Inditex up 4%, boosts retailers
Most major sub indexes trading in positive territory
S&P 500 futures up 0.2%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com.
THE BULL CASE FOR URANIUM FROM U.S. NUCLEAR TRENDS - CITI
Citi analysts said they remain bullish on uranium markets as the existing U.S. nuclear fleet offers incremental investment opportunities and can increase power generation due to higher baseload demand, policy, and power prices.
"More than ever before, U.S. nuclear energy developments are likely to have a meaningful impact on global uranium prices," said Citi analysts in a note dated June 4.
Citigroup upgraded its three-month global uranium (U3O8) price target to $97/lb, from around $89/lb right now UXXc1 and sees prices above $100/lb on a 12-month horizon. It expects prices to average $99/lb in 2024.
Citi believes a tangible market opportunity exists for the existing nuclear fleet to increase power generation and bridge the supply-demand gap. This could be through capacity factor improvements, upgrades, and bringing retired nuclear plants back in service.
They also think incremental power demand from AI/datacenters and electrification could drive efforts to improve utilization and incremental capacity upgrades to existing facilities.
"We forecast AI/datacenter growth to increase U.S. total power demand by about 456 TWh by 2030, which is equivalent to about 11% of U.S. total power generation."
Citi believes U.S. regulated utilities with nuclear assets are likely to receive production tax credit (PTC) cash flow benefits, and sees Duke Energy DUK.N, Entergy ETR.N, and Southern Company SO.N as being the most exposed.
"We think there is also an upside to un-contracted merchant nuclear power in the spot market in the future, as power demand is likely to structurally outpace incremental power supply by 2030."
(Reshma Rockie George)
*****
WEDNESDAY'S EARLIER LIVE MARKET POSTS
UK RACES UP THE M&A LEAGUE TABLES IN 2024 CLICK HERE
VOLATILITY SAYS NO AI BUBBLE (YET) - BOFA CLICK HERE
CAN US PAYROLLS NUDGE BITCOIN TO A NEW RECORD? CLICK HERE
THE OIL AND GAS IMPACT OF LABOUR WINNING THE UK ELECTION CLICK HERE
RETAIL RALLY CLICK HERE
FEELING POSITIVE - CLICK HERE
MORNING BID - RATE CUT WAGERS FIRE UP AGAIN -CLICK HERE
($1 = 0.7830 pounds)
GLOBAL M&A ACTIVITY May LSEG report https://reut.rs/45disLL
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
