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Investing.com - UBS initiated coverage on Cameco Corp. (NYSE:CCJ) with a Neutral rating and a price target of C$140.00, citing recent price momentum despite positive industry fundamentals. The stock currently trades at a P/E ratio of 107.12, reflecting high valuation multiples across several metrics according to InvestingPro data.
The uranium producer offers "high quality exposure to the uranium thematic," which UBS believes looks attractive in the medium to long term with demand compound annual growth rate exceeding 3.5% and potential upside in uranium prices. InvestingPro data shows Cameco has achieved a perfect Piotroski Score of 9, indicating strong financial health and operational efficiency.
UBS expects Cameco’s earnings to grow significantly this decade as the company re-contracts sales at increasingly higher spot prices, while its Westinghouse unit captures contracts on new build nuclear reactors. This aligns with InvestingPro data showing revenue growth of 23.88% over the last twelve months, with analysts forecasting continued net income growth this year.
Despite the strong fundamental narrative and earnings upcycle, UBS notes that recent headlines and positive catalysts have pushed Cameco shares higher, with the stock up 23% over three months and 72% year-to-date. InvestingPro data confirms this momentum, showing a 79.53% year-to-date return and 81.86% gain over the past six months, though the stock has taken an 8.52% hit over the last week.
The firm expects spot uranium prices to climb higher in 2026, potentially driven by an inventory restocking cycle, but remains "on the sidelines given the recent momentum and trading premium" as the stock trades near full value on most valuation metrics. This assessment is supported by InvestingPro Fair Value calculations, which indicate the stock is currently overvalued despite the analyst consensus recommendation leaning toward Buy (1.63).Want deeper insights on Cameco and other uranium stocks? InvestingPro offers 18 additional ProTips, comprehensive Fair Value models, and detailed financial metrics to help you make informed investment decisions. Pro Research Reports available for 1,400+ US equities transform complex data into clear, actionable intelligence.
In other recent news, Cameco Corporation reported its third-quarter 2025 financial results, highlighting a mixed performance. The company posted an earnings per share (EPS) of $0.07, which was significantly below the forecasted $0.23, resulting in a 69.57% negative surprise. However, Cameco’s revenue exceeded expectations, reaching $615 million against the anticipated $568 million, marking an 8.27% positive surprise. Despite the earnings miss, BofA Securities maintained its Buy rating on Cameco, with a price target of $130.00, noting a dividend hike as a positive factor. The company’s Westinghouse Electric Company segment also reported EBITDA results below forecasts, contributing to the overall earnings shortfall. Raymond James reiterated its Outperform rating for Cameco, emphasizing the company’s lower-risk exposure to the uranium market through diversified supply sources. These developments reflect ongoing investor interest and analyst confidence in Cameco’s strategic positioning within the industry.
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