Citi shares its 3-month uranium outlook. Here are the price targets

Citi analysts are forecasting that uranium prices could soar above $100 per pound within the next three months due to a surge in nuclear power investments and stricter fuel requirements driving demand, according to their recent report. The bank's long-term uranium price benchmark has reached an all-time high of $96 per pound, continuing a streak of growth that began in January 2025 and building upon an uptrend that started in 2018.

The demand for nuclear power remains robust, thanks to its competitive electricity costs and an expanding list of projects. In the United States, several small modular reactors are already under construction, with two or three more projects potentially gaining approval later this year. Additionally, three nuclear plants are being restarted, alongside power uprates backed by the Department of Energy's UPRISE program.

Military demand could also become a new source of uranium usage, as the U.S. Army's $2.2 billion Janus program has chosen five developers to construct microreactors at five military sites, with the potential to generate demand in uranium enrichment, fuel fabrication, and other nuclear fuel-cycle services. In a bullish scenario, which analysts assign a 25% probability, uranium prices are expected to average $99 per pound in 2026.

In a bearish scenario, which has a 15% probability, the average price for 2026 is projected to be $85 per pound. This outcome would rely on Russian enriched uranium returning to U.S. and European markets, enrichment costs dropping to around $150 per separative work unit, and at least 70% of junior mining projects slated for the next five years successfully entering production.