Cameco price target raised to C$59 from C$50 at BofA

BofA raised the firm’s price target on Cameco to C$59 from C$50 and keeps a Buy rating on the shares after the company announced a reduction to 2023 production guidance at both its Cigar Lake and McArthur/Key Lake uranium operations. Overall 2023 production is now guided to up-to-30.3 million pounds, which is a 2.7Mlb reduction from prior guidance for up-to-33Mlbs, and Cameco’s share of the new 2023 production guidance is 18.7Mlbs, down from 20.3Mlbs prior, the analyst tells investors. Shares may underperform on the news, but the need for Cameco to offset lost production with spot market U3O8 purchases should be a net benefit to the uranium price, and ultimately an offsetting benefit to Cameco, the analyst argues.