Cameco stock rises as Goldman initiates coverage with Buy rating

Investing.com - Goldman Sachs initiated coverage of Cameco Corp. (NYSE:CCJ) and Uranium Energy (NYSE:UEC) with Buy ratings on Tuesday, as nuclear stocks surged approximately 10% compared to the S&P 500’s 0.47% gain.

The positive sentiment toward nuclear growth under the current administration continues to build momentum, according to Goldman’s research note. The firm cited several recent developments supporting the sector’s outlook. This optimism is reflected in Cameco’s strong fundamentals, with revenue growth of 34.68% and robust operational metrics. InvestingPro subscribers can access 20 additional key insights about Cameco’s growth trajectory and market position.

One catalyst mentioned was Cameco’s contracting for UF6 (uranium hexafluoride), which Goldman suggests could potentially drive optimism for a restart of the Springfields facility in the United Kingdom.

Goldman also highlighted three small modular reactor (SMR) agreements for deployment in the UK, describing them as "various JDA/MOU types" that form part of broader US-UK technology and energy deals announced ahead of President Trump’s visit to the UK this week.

The investment bank further noted Energy Secretary Wright’s comments at the International Atomic Energy Agency’s annual general conference, which emphasized the need for domestic uranium and enrichment capacity.

In other recent news, Cameco Corporation reported impressive second-quarter 2025 results, significantly exceeding earnings and revenue expectations. The company achieved an earnings per share of $0.71, more than double the forecasted $0.35, and revenue reached $877 million, surpassing the projected $585.4 million. These results represent a notable surprise of 102.86% in earnings and 49.81% in revenue. Additionally, Cameco’s stock received an Outperform rating initiation from CLSA, which cited growing nuclear energy demand as a positive factor for the company. BMO Capital raised its price target for Cameco to Cdn$120, maintaining an Outperform rating despite concerns over production risks at the McArthur River mine. Similarly, BofA Securities increased its price target to C$130 while keeping a Buy rating, even as Cameco announced a reduction in its 2025 uranium production guidance. The U.S. Energy Secretary’s plans to boost the national strategic uranium stockpile have also contributed to a positive outlook for uranium stocks, impacting companies like Cameco. These developments highlight the dynamic nature of the uranium and nuclear energy markets.

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