Nucor earnings beat by $0.08, revenue fell short of estimates
On Monday, BMO Capital Markets increased the price target for Cameco Corp . (TSX:CCO:CN) (NYSE:CCJ) shares to C$95.00, up from the previous C$85.00, while maintaining an Outperform rating on the stock. The upgrade follows the announcement of a significant deal that is expected to enhance Cameco’s earnings before interest, taxes, depreciation, and amortization (EBITDA).
Cameco, which holds a stake in Westinghouse Electric Company, is set to benefit from a lucrative contract recently secured by Korea Hydro & Nuclear Power (KHNP) with the Czech Republic. The deal is projected to add US$170 million to Cameco’s share of Westinghouse’s EBITDA. This substantial increase is anticipated to contribute to a strong second quarter, with projected EBITDA for Cameco reaching C$728 million, a 51% year-over-year growth.
The positive impact of the Czech reactor deal extends beyond the immediate quarter. BMO Capital Markets forecasts Cameco’s 2025 EBITDA to hit C$2,270 million, marking a 12% increase from previous estimates. The analyst noted that the deal not only bolsters the near-term financial outlook for Cameco but also underscores the potential for additional gains from future projects undertaken by KHNP.
The nuclear sector has been experiencing a growing sentiment in favor of its role in energy production, and Westinghouse’s outlook was already favorable prior to this development. The new agreement with the Czech Republic, however, has shed light on the significant upside potential from KHNP’s upcoming construction projects.
Cameco’s stock is expected to reflect the optimism surrounding the company’s future earnings potential. The revised price target of C$95 signifies BMO Capital Markets’ confidence in Cameco as a leading investment choice within the uranium sector.
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