Q: I am underweight in Materials sector and if I want to add some Uranium exposure. Do you think it has good upside for the near term after the recent pullback? Do you think an ETF like URA is better rather than individual companies like CCO and NXE
5i Research Answer:
We like the uranium sector, and overall the demand outlook should continue to be favourable in the coming years. We think URA is a good option for investors that are seeking a passive approach to uranium exposure, but over the long term, NXE and CCO have outperformed the ETF. Overall, we would give NXE the slight edge here, with CCO following behind as a slightly more conservative choice.