-- Stifel Canada on Thursday maintained its buy rating on the shares of NexGen Energy (NXE.TO) and its C$30.00 price target after the company wrapped up its winter drilling program at its Patterson Corridor East uranium project in northern Saskatchewan.
"NexGen announced completion of its 2026 winter drill program at the Patterson Corridor East (PCE) discovery, highlighting a 33% vertical expansion of the high-grade subdomain to 550m (from 412m) over a 210m strike. Key results include RK-26-271c1 (12.6m >10,000cps, 2.3m >61,000cps) and RK-26-280c1 (4.2m >10,000cps) that intersected mineralization 834m below surface. Furthermore, the discovery of a separate parallel trend 600m southeast suggests the PCE system may repeat, mirroring the multi-shear architecture of Arrow. Recall that early drilling at PCE (located 3.5km east of Rook 1) indicates a large, high-grade system analogous to Arrow, and may be one of the more underappreciated aspects of the NexGen story and underpins long-term growth optionality beyond Arrow. We currently assume a PCE mineral inventory value of $2.95/share (155Mln lbs @ US$10/lb) based on 6.3Mt @ 1.12% U3O8 (0.01% cut-off grade). We reiterate our Buy rating," analyst Ralph Profiti wrote.
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