Cameco resumed with an Outperform at BMO Capital

BMO Capital analyst Alexander Pearce resumed coverage of Cameco with an Outperform rating with a price target of C$68, up from C$42. A lot has changed since the firm last covered the stock, with uranium prices now at decade highs and momentum for low carbon nuclear generation and security of supply increasingly important for utilities and governments, the analyst tells investors in a research note. In a sector with a limited number of producers, Cameco’s advantageous geographical production base, its position as the largest and most liquid uranium stock, along with its “attractive EBITDA” growth, should support further upside to its stock price, BMO added.