RBC cuts its outlook for uranium prices over the next several years as it concludes the market will remain in surplus through 2020.
RBC believes Japanese reactor restarts could result in a recovery in uranium prices to $40/lb. in late 2014 or early 2015, but thinks the price is likely to be capped at that level until the market begins to tighten; the firm predicts only four Japanese reactors will restart this year with 28 - slightly more than half the current fleet - eventually restarting.
Spot prices recently dropped below $30 as supply remains well ahead of demand since the Fukushima disaster.
RBC cuts its price target for industry leader Cameco (CCJ -2.5%), seeing shares rangebound between $18-$27.