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Investing.com - RBC Capital raised its price target on Cameco Corp . (TSE:TSX:CCO) (NYSE:CCJ) to C$100 from C$90 on Friday, maintaining an Outperform rating on the uranium producer’s stock.
The price target increase reflects RBC’s view that Cameco is "uniquely well-positioned to benefit from accelerating growth in the nuclear industry and a tight uranium market." The firm highlighted Cameco’s partnership with Westinghouse, which it describes as having a "pole position within the nuclear industry."
RBC noted Westinghouse’s "ubiquitous nuclear services business" and its AP1000 reactor design, which the firm considers a "widely considered large reactor design." The analyst also pointed to Westinghouse’s "mutually beneficial partnership with Korean nuclear builders" as a strategic advantage.
The firm increased its net asset value per share estimate for Cameco to $66 from $58, incorporating the "risk-adjusted value of potential AP1000 new build projects in the US and Korean-led export projects." RBC maintained its 1.5x price-to-NAV multiple, citing "potential for further nuclear growth opportunities and upside to our uranium price forecast."
RBC also emphasized the quality of Cameco’s uranium mining operations, describing them as "low-cost tier 1 assets that continue to operate well."
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