Jefferies Puts Its Weight Behind Cameco With $138 Price Target

Jefferies launched coverage of Cameco (CCJ) with a Buy recommendation and set a $138 price objective. This decision came after Wellington Management disclosed a new position of 2.09 million CCJ shares during the second quarter, worth roughly $212.9 million.

Laurence Alexander, the analyst covering the stock, emphasized Cameco's standing as a leading global supplier of uranium fuel as a primary rationale for the optimistic stance. He highlighted that over 30 nations have committed to tripling their nuclear generation capacity by mid-century, while major technology companies are securing long-term power agreements to support artificial intelligence data centers.

Jefferies' valuation methodology employed a sum-of-the-parts framework, assigning $63 per share to upstream operations, $11 per share to conversion facilities, $7 per share to undeveloped assets and corporate functions, and $51 per share to Cameco's strategic Westinghouse collaboration with the federal government.

Cameco Corporation reported disappointing second-quarter results, with earnings of $0.13 per share falling short of the $0.26 analyst expectation. The company's total revenue reached $573.1 million, representing a 6.8% year-over-year decline and narrowly missing the $579.6 million projection.