Bet on uranium: Kazakhstani company made it to the "top 10 stocks" of emerging markets

"Kazatomprom is included in our list of 10 emerging market stocks for 2026", - said Bank of America in the review, which was read by Oninvest. BofA confirmed for the Kazakh company a "buy" recommendation and a target price of $100 per global depositary receipt - 22% higher than the current quotations.

BofA considers the company's shares attractive for a number of reasons: the company's annual profit for 2025 has exceeded market expectations, the "direct" impact of the Middle East crisis on it is limited, while nuclear power is regaining its status as a key tool in addressing the global challenges of decarbonization and energy security, the bank said.

BofA analysts also reiterated a bullish view on the uranium market, expecting prices to soar from the current $85 to $135 per pound by 2027. "In the long term, the main driver will be demand from China, which plans to significantly increase nuclear power capacity," they emphasized.

BofA attributes the growth potential of Kazatomprom shares to uranium appreciation, weakening of the tenge against the dollar and consolidation of assets. Among the factors that could put pressure on the securities of the company, the investment bank named possible production and logistical problems, sanctions risks for the Russian partner - Rosatom, the risk of accidents at nuclear power plants, which "lead to a negative public attitude to nuclear energy," as well as the growth of taxes in Kazakhstan.

Geopolitical discount

Kazatomprom shares continue to trade at a discount to other uranium producers: the EV/EBITDA multiple in the forecast for 2026 is about 8.5-9 compared to an average of about 17 for peers, noted in the March review of Canaccord Genuity. The investment bank maintained its "buy" recommendation for the company's securities, but lowered its target price from $98 to $95 per security.

Kazatomprom's closest competitor, Canada's Cameco, produces and sells less uranium, but its capitalization is twice as high. Cameco's strengths include working in the "less risky" Canadian market, diversification through Westinghouse, prospects for production growth amid high demand in the West, and high liquidity on North American platforms where its shares are traded. Advantages of Kazakhstan company - large production volume, low production cost and high margin - are leveled by geopolitical risks, binding to one region and limited liquidity of securities, Teniz Capital noted.

Kazatomprom's quotations have jumped by 35% over the past three months. Evaluations of the company's investment attractiveness have also improved over this period. According to FactSet, now all 10 Wall Street analysts covering Kazatomprom's activities advise to buy its shares. The average target price calculated by the service assumes growth of quotations of Kazakhstan uranium miner in the nearest year by 13%.

Driver of optimism

Uranium futures in the U.S. by the end of March fell to $85 per pound - a two-month low. Investors are afraid of market overheating after the January rally, so quotations declined even in spite of the growth of coal prices. Nevertheless, quotations are still above December levels: investors continue to bet on long-term demand, Trading Economics writes.

The main driver of this optimism is the boom in data centers for artificial intelligence. American technology giants Amazon, Google and Meta have already signed deals related to nuclear energy. Meanwhile, the US authorities are coming to the industry's aid: Washington has lowered regulatory barriers for uranium processing and enrichment plants and announced contracts with Cameco, Centrus and two other specialized companies, Trading Economics recalls.

This article was AI-translated and verified by a human editor