The uranium-producing company reported last week fourth-quarter earnings of $249 million, or 63 cents a share, an increase from year-earlier earnings of $190 million, or 48 cents."We believe there has been a material disconnect between uranium equities and uranium fundamentals year-to-date (YTD)," Bank of America Merrill Lynch analysts wrote in a Feb. 10 report. "Uranium equities have outperformed the S&P 500 (+7%) and S&P Global Mining Index (+4%) YTD, with CCO up 25% on no significant industry or company news and flat uranium spot prices. Given a lack of near-term positive fundamental catalysts, we believe uranium equities are due for a breather." Shares of Cameco were upgraded to buy from hold at TheStreet Ratings. Cameco has a forward P/E of 13.74; the average for nonferrous metals companies is 11.03. For comparison, First Quantum (FM.TO) and Inmet Mining (IMN.TO) both have lower forward P/Es of 11.98 and 9.51, respectively. Ten of the 14 analysts who cover Cameco rated it a buy. Three analysts gave it a hold rating and one considered it a sell. Cameco gets a B grade from TheStreet Ratings with a $26.35 price target. The stock closed Tuesday at $22.38 and has increased 23.99% year to date.
Silvercorp Metals The silver mineral properties company reported last week third-quarter earnings of $20 million, or 12 cents a share, a decline from year-ago earnings of $29.1 million, or 17 cents. "Higher labour costs, withholding tax assumptions on repatriated funds and minority interest payments are responsible for the balance of the remaining US$0.13 decline in F2013 EPS," BMO Capital Markets analysts wrote in a Feb. 12 report. "These factors are also responsible for the decline in EPS forecasts in F2014 and beyond, and near and long-term CFPS forecasts." Shares of Silvercorp Metals were upgraded to buy from hold at TheStreet Ratings. Silvercorp Metals has a forward P/E of 12.37; the average for platinum and precious metals companies is 16.33. For comparison, First Majestic Silver (AG) and Endeavour Silver (EXK) have forward P/Es of 12.09 and 12.44, respectively. Of the seven analysts who cover Silvercorp Metals, four gave it a hold rating and three rated it a buy. TheStreet Ratings gives Silvercorp Metals a B- grade with a $8.15 price target. The stock closed Tuesday at $7 and has risen 9.37% year to date.
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