Analyst Lawson Winder from Bank of America Securities reiterated a Buy rating on Cameco (CCJ – Research Report) and increased the price target to C$106.00 from C$86.00.
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Lawson Winder has given his Buy rating due to a combination of factors that highlight Cameco’s strong growth potential. The recent announcement of Cameco’s Westinghouse subsidiary’s involvement in the Dukovany nuclear reactor project is a significant contributor, expected to add $170 million to the company’s 2025 adjusted EBITDA. This development has led to an increase in the company’s earnings per share estimates and a higher price objective for the stock.
Additionally, the potential for further growth is bolstered by discussions of deploying new reactors in the U.S., following supportive executive orders. Despite challenges such as wildfires, Cameco has maintained its uranium production guidance, reflecting operational resilience. The overall bullish outlook on uranium, driven by supply disruptions and new reactor builds, further supports the Buy rating, indicating confidence in the company’s future performance.
In another report released yesterday, National Bank also maintained a Buy rating on the stock with a C$95.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CCJ in relation to earlier this year.