UPDATE 1-RESEARCH ALERT-Dundee starts Uranium One with buy

(Recasts, adds details, share movement)

Nov 5 (Reuters) - Dundee Securities began coverage of Uranium One Inc (UUU.TO) with a "buy" rating, citing its low-cost operations, and said the uranium producer has begun to provide value for investors.

"Reinventing itself as the low-cost uranium producer of choice, we believe the company has turned the corner in light of its recent Dominion closure," analyst David Talbot wrote in a note to clients.

In October, Uranium One shut its Dominion mine in South Africa due to declining prices for the commodity used to fuel nuclear reactors.

"With Dominion out of the way, low-cost operations should be the norm and Uranium One will likely be well positioned to weather periods of weak uranium prices - perhaps even better than some of its peers," the analyst said.

Failure to sell Dominion prolongs an estimated C$1 million per month in care and maintenance expenses, he noted.

The stock, which had soared 142 percent over the past five days through Tuesday, has perhaps been buoyed by takeover speculation, said the analyst, who set a price target of C$2.75 on Uranium One.

The company's shares, which have fallen more than 82 percent so far this year, were up 3 Canadian cents at C$1.58 on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Deepak Kannan)