-- Uranium Royalty Corp. (URC.TO, UROY) was upgraded to Outperform from Market Perform at Raymond James on Tuesday.
Analyst Brian MacArthur raised his price target on shares of the Vancouver-based uranium company to $6.26 from $5.75.
MacArthur said URC's agreement to combine with entities owning a 92% interest in Sweetwater Royalties from funds managed by Orion and Ontario Teachers', adds meaningful near-term cash flow.
"We believe royalty companies like URC offer equity investors diversified exposure to commodity prices, while mitigating downside risk given limited exposure to operating and capital costs," the analyst said.