BMO Capital analyst Alexander Pearce maintained a Buy rating on Cameco yesterday and set a price target of C$160.00.
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Alexander Pearce has given his Buy rating due to a combination of factors that highlight Cameco’s strategic position in the nuclear energy sector. The recent US$80 billion partnership for new Westinghouse reactors significantly reduces risks associated with the deployment of AP1000 reactors, enhancing the overall outlook for the nuclear industry. This development is expected to contribute to Cameco’s EBITDA growth of 27% over the next two years, presenting an attractive opportunity for investors seeking exposure to the sector’s positive momentum.
Furthermore, Pearce notes that Cameco’s advantageous geographical positioning and vertical integration, along with its status as the largest and most liquid uranium stock, make it well-positioned to benefit from the increasing demand for nuclear energy and the growing importance of supply security for utilities and governments. Despite some uncertainties regarding the timing and costs associated with the new builds, the company’s robust fundamentals and the improving Westinghouse outlook support the Buy rating.
In another report released on October 30, RBC Capital also maintained a Buy rating on the stock with a C$160.00 price target.
Based on the recent corporate insider activity of 65 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.