"One of the Best Ideas": Why Does BofA Expect Kazatomprom's Stock to Rise by Nearly 50%?
BofA forecasts a rise in uranium prices in 2026 and names Kazatomprom shares as one of the best buy ideas / Photo: Vladimir Tretyakov / Shutterstock.com
Bank of America (BofA) has released its new quarterly “Top 10 Investment Ideas” list for Eastern Europe, the Middle East, and Africa (EEMEA). Kazatomprom was one of two companies to retain its spot on the list.
According to the bank’s experts, the key advantage of the stock is the rise in uranium prices they foresee. Kazatomprom accounts for more than 30% of global uranium supply and has access to technologies from international companies such as Cameco, Orano, CGN, and others. Furthermore, compared to other producers, it ranks in the bottom quartile in terms of production costs, the researchers note.
China, which is planning a large-scale nuclear power construction program, is expected to be the main source of demand, according to the report: the country already consumes about 16% of the world’s uranium, while burning about 4.5 billion metric tons of coal annually. By 2060, China intends to become “carbon neutral,” which could lead to a three- to fourfold increase in uranium consumption.
In light of the global push toward decarbonization and energy independence, as well as the tight balance between supply and demand, analysts at Bank of America forecast an average uranium price of $105 per pound in 2026. And by 2027, amid a shortage, they expect the price to rise to $135 per pound.
By early 2026, uranium was trading at just over $80 per pound. In February, prices jumped above $101 for just a couple of days, then fell just as sharply—and have since settled in the $83.5–87 per pound range.
BofA’s price target for Kazatomprom shares remains unchanged at $100, with a “buy” rating. As of the time of publication, the company’s depositary receipts on the London Stock Exchange were down 1.3% from the previous close to $68.1.
On May 8, investment bank J.P. Morgan revised its recommendation on Kazatomprom shares from “buy” to “neutral” in a research note. Analysts placed the stock on a “watch list for potential negative catalysts” ahead of the release of its first-half 2026 results.
The investment bank’s skepticism stemmed from a number of factors: this year, the mineral extraction tax in Kazakhstan rose from 9% to 12–14% (depending on production volumes and prices). In addition, Kazatomprom’s costs are primarily denominated in tenge, and the tenge has strengthened significantly since the beginning of the year.
"Kazatomprom" is a state-owned company; 63% of its shares are owned by the sovereign wealth fund "Samruk-Kazyna," with another 12% managed by the fund but held on the balance sheet of the Ministry of Finance of Kazakhstan, and 25% of the shares are in free float.
In addition to “Kazatomprom,” Etihad Etisalat (Mobily) (telecommunications, Saudi Arabia) remains on Bank of America’s list of investment ideas for this quarter. Otherwise, the ranking has been updated: this time, the top buy recommendations include, among others, ADNOC L&S (logistics operator, UAE), Capitec (retail bank, South Africa), Naspers (internet and e-commerce, South Africa), Pepco Group (retail, Poland), Qatar National Bank (commercial bank, Qatar), and Salik (toll roads, UAE).
This article was AI-translated and verified by a human editor
