Nano Nuclear Energy shares fell the most since April Tuesday after Ladenburg Thalmann & Co. cut its recommendation to sell from buy on its risk-reward profile.
Analyst Michael Legg sees the company’s focus on ancillary ventures in fuel, transportation and consulting as distractions from its core initiatives like the Kronos reactor: “Given higher expected costs, significant dilution risk, and increasing competitive pressure, we believe NNE’s risk-reward profile is skewed to the downside.”
Legg still sees the company as venture-stage, as reactor revenues are not expected until 2031 at the earliest. He also notes that the company has had limited institutional investment interest, with much of the stock momentum coming from retail investors. Nano Nuclear Energy reported earnings that topped estimates for the quarter on Aug. 14.
James Walker, CEO of NANO Nuclear Energy, responds to Legg's comments on Bloomberg Businessweek Daily. (Source: Bloomberg)
