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Investing.com - BofA Securities raised its price target on Cameco Corp. (TSX:CCO) (NYSE:CCJ) to C$130.00 from C$110.00 while maintaining a Buy rating, despite production challenges at the company’s McArthur River mine. The uranium producer, now valued at $34.25 billion, has seen its stock surge nearly 96% over the past year, trading near its 52-week high of $80.32.
Cameco announced a reduction of 3-4 million pounds in its 2025 consolidated uranium production guidance, representing an 8% to 11% cut from the previously expected 36 million pounds on a 100% basis, excluding its third-party operated Kazakh joint venture Inkai.
The company attributed the production guidance cut to underground mine development challenges at McArthur River, issues that Cameco had previously warned about in its second quarter 2025 results.
BofA Securities reduced its 2025 earnings estimates for Cameco but modeled no impact beyond this year, aligning with the company’s release that suggested the production issues would be contained to 2025.
The investment bank noted that Cameco, due to its significant contribution to global uranium production, is in an "enviable position" of benefitting from upward pressure on uranium prices when experiencing operating challenges, and expects the company’s share price to rise in response to the news.
In other recent news, Cameco Corporation reported strong financial results for the second quarter of 2025, significantly exceeding both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.71, more than double the anticipated $0.35, representing a 102.86% surprise. Revenue also surpassed forecasts, reaching $877 million compared to the projected $585.4 million, marking a 49.81% surprise. Despite these impressive figures, the stock experienced a decline in pre-market trading. However, it showed some signs of recovery shortly thereafter. These developments highlight the company’s robust performance in the recent quarter. Investors and analysts will likely be monitoring future announcements closely.
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