10:52 AM EDT, 04/10/2025 (MT Newswires) -- National Bank of Canada said in a note dated April 9 that Cameco ( CCJ ) and Denison Mines ( DNN ) remain its top picks among uranium equities amid the recent "softness" in uranium spot prices.

According to the bank, the current pullback in uranium equities has brought back equities to valuation levels that are attractive compared to the past five-year average.

National Bank noted that while tariffs are creating concerns around a global recession, it provided clarity on uranium and uranium-related products, which were overall exempt from the Trump administration's orders due to its inclusion in Annex II of the EO. Additionally, Canadian exports of uranium into the U.S. are expected to be exempt if USMCA compliant.

With the negative market reaction to the intensification of global trade tensions, National Bank noted uranium stocks had sold off with valuation metrics such as consensus P/NAV and EV per total resources (EV/lb) overall sitting below their 5-year average except Cameco ( CCJ ) and NexGen Energy ( NXE ) on an EV/lb basis as of the close on April 9, 2025. It said: "The announcement of a 90-day pause on tariffs from non-retaliatory countries (excludes China) on April 9 led to a strong intraday rebound in the overall market including uranium equities highlighting a near-term potential return of the risk-on trade. We do acknowledge that short covering most likely played some part in this and as such highlights as well the short interest over our coverage universe."

National added: "While the combined picture highlights opportunity, we would argue that when paired with the balance sheet outlook we provide below in Figure 6, there are opportunities that could be attractive longer-term within our coverage universe as uranium prices rebound. We would highlight Cameco ( CCJ ) and Denison Mines ( DNN ) as the most attractive on both valuation and balance sheet strength amongst the producers/royalties and developers, respectively. In the near-term, the risk-off sentiment is likely to dominate over fundamentals and longer-term outlook."

Based on its own P/NAV multiples at spot prices since Trump's "Liberation Day," NexGen Energy ( NXE ) and Denison Mines ( DNN ) have "held in the best", while IsoEnergy (ISO.TO) and Uranium Royalty ( UROY ) have sold off the most.

NexGen, Denison and Uranium Energy (UEC.VI) rebounded the most likely related to their higher level of short interest versus the group, the bank said.

Price: 55.53, Change: -1.00, Percent Change: -1.77