Cameco’s Strong Market Position and Self-Funded Growth Justify Buy Rating Amid Rising Uranium Prices

Analyst Bob Brackett from Bernstein reiterated a Buy rating on Cameco (CCJ – Research Report) and increased the price target to $70.00 from $52.00.

Bob Brackett’s rating is based on several compelling factors. Firstly, Cameco is positioned in the top quintile of the S&P 500 in terms of cash flow per share growth, which justifies a higher valuation multiple. The company is better positioned than its peers due to its strong market position and significant competitive advantages across its integrated businesses.
Furthermore, Cameco’s growth is self-funded, as evidenced by its free cash flow yield and low net debt to EBITDA ratio, contrasting with many other high-growth companies that rely on external funding. Additionally, the recent rise in uranium prices and positive developments in the nuclear power sector have further strengthened Cameco’s outlook, prompting an updated price target of $70 per share. These factors collectively support the Buy rating for Cameco’s stock.

In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a C$92.00 price target.