Kazatomprom (KAP LI) Liechtenstein
Materials
Strong fundamentals with demand supply dynamics expected to become more favourable as nuclear energy generation across major economies gains significance supported by an increasing need of a cheap and reliable clean energy-based baseload energy capacity. While geopolitical concerns are the main reason for its low P/E, the likelihood of any operational disruption looks low, and AlphaBox believes these concerns should subside as time passes by. KAP is a cheaper way for investors to gain exposure to Uranium price recovery. Its nearest peer, Cameco is trading at a trailing P/E of 70.6x vs. KAP at 9.6x. Sees 45% upside over the next 2-3 years and an estimated 7.4% DY for FY24.
Edition: 160
- 12 May, 2023