On Tuesday, Goldman Sachs resumed coverage of Cameco Corp . (TSX:CCO:CN) (NYSE: CCJ), issuing a Buy rating and setting a 12-month price target of C$89.00 ($65.00). The firm’s analysts highlight a projected 27% upside to their price targets, expressing confidence in the company’s growth prospects. Currently trading at $51.18, Cameco (NYSE:CCJ) has demonstrated strong momentum with analyst targets ranging from $51.82 to $63.93. InvestingPro analysis indicates the stock is trading at premium valuations, with multiple ProTips highlighting its high valuation multiples.
Goldman Sachs’ optimistic outlook for Cameco is based on three main factors that they believe will help the company outperform its peers. First, they anticipate growth in nuclear demand. Second, they foresee pricing tailwinds benefiting the company, supported by impressive revenue growth of 29.88% over the last twelve months. Third, they expect a significant unlocking of shareholder value through Cameco’s subsidiary, Westinghouse.
Cameco, according to the analysts, is in a prime position to capitalize on the nuclear sector, both tactically in the short term and structurally due to favorable supply-demand dynamics in the uranium market. With a market capitalization of $22.23 billion and a strong financial health score of GOOD from InvestingPro, the company maintains a solid balance sheet with moderate debt levels. They note that Cameco’s assets contribute to 25% of global uranium production, with the company’s production share estimated to be around 14% through 2035, as per Goldman Sachs’ research.
The valuation of Cameco could also see an upward re-rating due to the performance of its Westinghouse subsidiary, which Cameco acquired a 49% stake in during 2023. This segment is expected to benefit from an increase in nuclear activities, including reactor restarts and new reactor constructions.
Goldman Sachs has maintained its previous investment rating for Cameco and has updated earnings estimates and price targets from those previously published. The firm’s renewed coverage reaffirms their belief in Cameco’s strong position within the nuclear energy sector and its potential for significant growth and value creation.
In other recent news, Cameco Corporation has been the subject of multiple analyst reports and strategic evaluations. Goldman Sachs has initiated coverage on Cameco with a Buy rating and a price target of $65, citing potential growth in nuclear demand and value unlocking from Cameco’s subsidiary, Westinghouse. RBC Capital Markets has reaffirmed their Outperform rating on Cameco, maintaining a price target of Cdn$90, and highlighted the company’s disciplined capital allocation and operational performance. Additionally, Desjardins set a Buy rating on Cameco with a price target of C$86, noting the company’s significant presence in the uranium market and its strategic stake in Westinghouse Electric.
Cameco’s operational outlook remains strong, with McArthur River and Cigar Lake operating at full capacity and low production costs, while JV Inkai in Kazakhstan targets increased production for 2025. The company anticipates higher sales and realized prices in its Fuel Services segment, reflecting recent market strength. RBC Capital adjusted its EBITDA estimates for Cameco to $1.7 billion for 2025 and $2.0 billion for 2026, based on a strengthening uranium market and strategic growth initiatives. Meanwhile, Oklo Inc experienced a stock increase amid reports of potential U.S. government executive orders to accelerate nuclear power plant construction, which could benefit companies in the nuclear sector.
In contrast, the coal industry saw a surge in stock prices following reports of impending executive orders from President Donald Trump aimed at boosting coal production and leasing on federal lands. These developments underscore the dynamic landscape of the energy sector, with nuclear and coal industries responding to differing policy directions and market conditions.
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