Bank of America Securities analyst Lawson Winder reiterated a Buy rating on Cameco (CCJ – Research Report) yesterday and set a price target of C$97.00.
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Lawson Winder’s rating is based on a combination of positive factors observed in Cameco’s financial performance and strategic positioning. Cameco’s Q4’24 results showed earnings per share slightly below Bank of America’s expectations but above the consensus, indicating stronger overall performance compared to market forecasts. The company successfully managed higher sales volumes and maintained cost efficiency, which contributed to better-than-expected free cash flow and a reduction in net debt.
Moreover, Cameco’s long-term outlook remains robust with new contracts added despite a generally muted contracting environment in 2024. The company’s commitment to doubling its dividend by 2026 signifies strong confidence in future cash flow generation. Additionally, Lawson Winder acknowledges the bullish outlook for uranium, driven by supply constraints and increased interest in nuclear energy, which positions Cameco favorably in the market. Consequently, these elements collectively support the Buy recommendation for Cameco’s stock.
In another report released on February 5, Canaccord Genuity also maintained a Buy rating on the stock with a C$85.00 price target.
CCJ’s price has also changed moderately for the past six months – from $41.380 to $46.540, which is a 12.47% increase.