Cameco stock initiated with Outperform rating by CLSA on nuclear growth

Published 09/09/2025, 09:38
Cameco stock initiated with Outperform rating by CLSA on nuclear growth

Investing.com - Cameco Corporation (NYSE:CCJ) received an Outperform rating initiation from CLSA on Tuesday, with a price target of $102.00. The uranium producer, currently valued at $33.6 billion, has demonstrated remarkable momentum with a 109% return over the past year. According to InvestingPro data, the company maintains a "GREAT" financial health score, supported by strong growth metrics.

CLSA cited expanding nuclear energy demand as a key tailwind for the uranium producer, noting that nuclear reactors can operate for up to a century, contributing directly to Cameco’s profit margins.

The investment firm applied a 45x price-to-earnings multiple to its fiscal year 2027 earnings per share estimate of C$3.14, which stands 25% above consensus forecasts.

CLSA highlighted Cameco’s strong environmental, social, and governance (ESG) performance, pointing to the company’s "holistic corporate actions."

The research note acknowledged potential risks to its bullish outlook, including the possibility of a nuclear accident affecting the entire sector, as well as Cameco-specific operational challenges and geopolitical tensions.

In other recent news, Cameco Corporation reported impressive earnings for the second quarter of 2025, significantly exceeding expectations. The company achieved an earnings per share of $0.71, surpassing the forecasted $0.35, and reported revenue of $877 million, compared to the projected $585.4 million. This marks a notable surprise in both earnings and revenue figures. Meanwhile, BMO Capital raised its price target for Cameco to Cdn$120, maintaining an Outperform rating, despite the company’s reduced production guidance at the McArthur River mine. Similarly, BofA Securities increased its price target to C$130, retaining a Buy rating, even as Cameco announced a reduction in its 2025 uranium production guidance by 3-4 million pounds. These adjustments reflect an 8% to 11% cut from the previously expected production levels. The production challenges at McArthur River were cited as a factor in these changes. These developments highlight the ongoing dynamics in Cameco’s operational and market performance.

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