TLDR
- Jefferies initiated coverage on Cameco (CCJ) with a Buy rating and a price target of $138 per share (C$190)
- CCJ stock rose 3.4% Thursday following the Jefferies initiation
- Jefferies also initiated BWX Technologies (BWXT) with a Buy rating and a $181 price target
- Wellington Management acquired 2.09 million CCJ shares in Q2, valued at approximately $212.9 million
- Cameco’s Q2 earnings missed estimates, reporting $0.13 EPS vs. the $0.26 consensus
Cameco (CCJ) climbed 3.4% on Thursday after Jefferies initiated coverage with a Buy rating and a price target of $138 per share, or C$190. Analyst Laurence Alexander cited Cameco’s position as one of the largest global uranium fuel providers as a core reason for the bullish call.
Alexander pointed to growing nuclear power demand as the key driver for the sector. He noted that more than 30 countries have pledged to triple nuclear capacity by 2050, and that hyperscalers are signing baseload contracts to power AI infrastructure.
“Combining operating discipline and a strong balance sheet, Cameco is, in our view, a prime beneficiary of the West’s nuclear build-out,” Alexander wrote.
Jefferies broke down its valuation on a sum-of-the-parts basis. The firm valued upstream assets at $63 per share, conversion assets at $11 per share, undeveloped resources and corporate at $7 per share, and Cameco’s long-term Westinghouse partnership with the U.S. government at $51 per share.
BWX Technologies (BWXT) also got a lift from Jefferies Thursday, gaining 1.2% after receiving a Buy rating with a $181 price target. Alexander highlighted BWXT’s role as the sole-source supplier of naval nuclear reactor components and fuel for the U.S. Navy.
Jefferies projects BWX Technologies will deliver 6% to 7% sales growth and 13% to 17% earnings per share growth through 2030.
Institutional Investors Piling In
Wellington Management Group acquired a new position in Cameco during Q2, picking up 2.09 million shares valued at approximately $212.9 million. That gives Wellington around a 0.48% stake in the company.
Other institutional investors have also been adding exposure. Temasek Holdings took a new position in Q1 valued at $70.9 million. Sumitomo Mitsui Trust Group grew its stake by 35.2%, while Janus Henderson Group more than doubled its position, raising it by 102.3%. Institutional investors now own 70.21% of Cameco.
Earnings Miss Clouds the Picture
Despite the optimism from analysts, Cameco’s most recent quarterly results were a soft spot. The company reported Q2 earnings of $0.13 per share, well below the $0.26 consensus estimate. Revenue came in at $573.1 million, down 6.8% year over year and just short of the $579.6 million forecast.
That compares to $0.71 EPS in the same quarter last year.
Analysts as a group expect Cameco to post $1.27 earnings per share for the full fiscal year.
The broader analyst community remains constructive on the stock. Thirteen analysts carry a Buy rating on CCJ, five have a Hold, giving the stock a “Moderate Buy” consensus. The average price target sits at $145.68.
Truist Financial raised its target to $130 in August and kept a Buy rating. Bank of America trimmed its target slightly from $143 to $140 but also kept a Buy. Scotiabank maintains an Outperform rating with a $175 target.
CCJ has a 52-week range of $73.20 to $135.24, with the stock sitting near $98.75 before Thursday’s move.
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