Shaw and Partners provided an updated report on PEN yesterday...

Shaw and Partners provided an updated report on PEN yesterday (31 January), under the title “Is this the cheapest ASX uranium stock?”. It’s fairly clear from the accompanying analysis that, in the broker’s view, the answer to that question is ‘Yes’.

As part of its analysis Shaw’s compares the valuations of PEN and Boss Energy (BOE), noting the many similarities between the two companies but also the specific advantages which each enjoys over the other. It concludes that there is a wide disparity between the valuations of the two, despite their broadly similar assets: on Shaw’s modelling, the PEN share price is factoring in a uranium price of US$58/lb, whereas BOE is factoring in a price of US$122/lb.

Shaws retains a BUY recommendation on PEN and has a 12-month price target of 34c.