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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuNexGen Energy is likely to see considerable upside as it gets closer to completing its massive uranium mine, according to JPMorgan. The investment bank initiated coverage of the clean energy stock with an overweight rating. It also set a $14 price target on shares, implying 50% upside from Friday’s close. Shares were up nearly 3% in trading on Monday. “[NexGen Energy’s] portfolio screens favorably in terms of grade ( > 2%), scale ( > 10% market) and jurisdiction (Canada),” analyst Bill Peterson said Monday in a note to clients. “Equally important, the project is fully permitted, is well supported by funding providers and we see a path to a multi-decade mine life as adjacent prospects are integrated into the mine plan.” NexGen is constructing a large high-grade uranium mine and mill in Canada under its Rook I Project, which is expected to be completed by 2030. The mine will aim to produce 30 million pounds of uranium per year, according to NexGen. That should drive major upside to shares of NexGen, even though the project is far from finished and poses risks, per JPMorgan. “While construction is not without risk, we see headline risk as longer-dated and valuation as undemanding, resulting in an attractive risk-reward,” Bill Peterson wrote. The analyst added that similar uranium mine projects are not fully permitted, giving NexGen an edge over competitors and making its stock especially appealing to investors. In addition, the stock “offers a rare combination of tier-one asset quality and long-dated growth optionality” compared with other critical mineral names covered by JPMorgan, according to Peterson’s note. JPMorgan’s call lines up with consensus on Wall Street. All eight analysts covering NexGen Energy have a buy or strong buy rating on the stock, LSEG data shows. Shares have ticked up nearly 2% year to date, and the average analyst price target anticipates the stock will more than double from here.Read More