Cameco downgraded to Hold at Cantor Fitzgerald after production guidance cut

Cantor Fitzgerald downgraded Cameco to Neutral from Overweight with an unchanged price target of $36.50 after Cameco reported an operational update and reduced its 2023 production guidance by 8%. While this has a modest negative impact to Cameco’s business fundamentally, the 8% near-term production cut will likely drive spot U3O8 prices immediately higher, which should spark a short-term, broad-based rally across uranium equities in general, including Cameco, the analyst tells investors.