Yellow Cake (LON:YCA) Reaches New 1-Year High – Should You Buy?

Shares of Yellow Cake plc (LON:YCA) reached a new 52-week high during trading on Friday . The stock traded as high as GBX 603 and last traded at GBX 599.50, with a volume of 6311574 shares changing hands. The stock had previously closed at GBX 592.

Wall Street Analysts Forecast Growth

YCA has been the subject of several recent analyst reports. Berenberg Bank cut their target price on Yellow Cake from GBX 682 to GBX 675 and set a “buy” rating for the company in a research note on Tuesday, September 30th. Canaccord Genuity Group dropped their price target on shares of Yellow Cake from GBX 695 to GBX 680 and set a “buy” rating for the company in a research note on Thursday, December 4th. Panmure Gordon upgraded shares of Yellow Cake to a “buy” rating and lifted their price target for the stock from GBX 550 to GBX 630 in a research note on Tuesday, December 2nd. Finally, Citigroup boosted their target price on Yellow Cake from GBX 570 to GBX 670 and gave the stock a “buy” rating in a research note on Thursday, October 9th. Five equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has an average rating of “Buy” and an average price target of GBX 655.

Yellow Cake Stock Performance

The company has a 50-day moving average of GBX 549.04 and a 200-day moving average of GBX 531.46. The stock has a market cap of £1.44 billion, a price-to-earnings ratio of -2.78 and a beta of 0.27.

About Yellow Cake

Yellow Cake is a London-quoted company, incorporated in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding U3O8. It may also seek to add value through other uranium-related activities. Yellow Cake and its wholly owned subsidiary (the “Group”) seek to generate returns for shareholders through the appreciation of the value of its holding of U3O8 and its other uranium-related activities in a rising uranium price environment. The business is differentiated from its peers by its ten-year Framework Agreement for the supply of U3O8 with Kazatomprom, the world’s largest uranium producer.