TLDR
- Jefferies launched coverage of Cameco (CCJ) with a Buy recommendation and $138 price target (C$190 per share)
- Shares gained 3.4% Thursday in response to the positive analyst coverage
- BWX Technologies (BWXT) received a similar Buy rating from Jefferies with a $181 target
- Wellington Management added 2.09 million CCJ shares in Q2, representing roughly $212.9 million in value
- Q2 results disappointed with $0.13 EPS versus the $0.26 analyst consensus estimate
Shares of Cameco (CCJ) advanced 3.4% Thursday following Jefferies‘ decision to begin coverage with a Buy recommendation and set a price target of $138 per share, equivalent to C$190. The firm’s analyst Laurence Alexander emphasized Cameco’s standing as a leading global uranium fuel supplier as a primary factor behind the optimistic outlook.
According to Alexander, the expanding demand for nuclear energy represents the primary catalyst for the industry. He emphasized that over 30 nations have committed to tripling their nuclear energy capacity by 2050, while major technology companies are executing baseload power agreements to support artificial intelligence operations.
“With operational excellence and a robust financial position, Cameco stands out, in our assessment, as a key winner from Western nuclear expansion,” Alexander stated in his note.
The investment bank calculated its valuation using a sum-of-parts methodology. Jefferies assigned $63 per share to upstream operations, $11 per share to conversion capabilities, $7 per share to undeveloped assets and corporate functions, and $51 per share to Cameco’s strategic Westinghouse collaboration with the U.S. government.
BWX Technologies (BWXT) similarly benefited from Jefferies’ coverage Thursday, rising 1.2% after securing a Buy rating with a $181 price objective. Alexander emphasized BWXT’s unique position as the exclusive provider of naval nuclear reactor components and fuel for America’s Navy.
The firm forecasts BWX Technologies will achieve 6% to 7% revenue growth and 13% to 17% EPS expansion through 2030.
Institutional Investors Boosting Positions
Wellington Management Group established a fresh stake in Cameco throughout Q2, purchasing 2.09 million shares worth approximately $212.9 million. This transaction provides Wellington with roughly a 0.48% ownership interest.
Additional institutional players have been increasing their holdings as well. Temasek Holdings initiated a new position in Q1 worth $70.9 million. Sumitomo Mitsui Trust Group expanded its holdings by 35.2%, and Janus Henderson Group more than doubled its stake with a 102.3% increase. Institutional ownership currently represents 70.21% of Cameco’s outstanding shares.
Recent Earnings Disappoint
Notwithstanding the positive sentiment from Wall Street analysts, Cameco’s latest quarterly performance fell short of expectations. The uranium producer delivered Q2 earnings of $0.13 per share, significantly missing the $0.26 consensus projection. Revenue totaled $573.1 million, representing a 6.8% year-over-year decline and narrowly missing the $579.6 million estimate.
This marked a substantial drop from the $0.71 EPS reported in the comparable quarter one year earlier.
The analyst community collectively anticipates Cameco will generate $1.27 in earnings per share for the current fiscal year.
Overall Wall Street sentiment toward the stock remains positive. Thirteen research analysts maintain Buy recommendations on CCJ, while five hold neutral ratings, resulting in a “Moderate Buy” consensus view. The mean price target stands at $145.68.
Truist Financial elevated its price objective to $130 in August while maintaining its Buy stance. Bank of America slightly reduced its target from $143 to $140 but retained its Buy rating. Scotiabank continues with an Outperform rating and $175 price target.
CCJ trades within a 52-week range spanning $73.20 to $135.24, with shares positioned around $98.75 prior to Thursday’s rally.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
