Goldman Sachs has begun covering Cameco (CCJ, Financial) with a positive outlook, assigning a Buy rating and setting a price target of $65. This optimistic stance is rooted in the anticipated growth of nuclear energy, fueled by both existing and upcoming nuclear reactor developments. The analysts believe that the constrained growth in uranium supply heightens the attractiveness of upstream uranium producers like Cameco. With the increasing demand for uranium and favorable pricing conditions, Cameco is well-positioned to capitalize on these market dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Cameco Corp (CCJ, Financial) is $57.04 with a high estimate of $64.41 and a low estimate of $42.23. The average target implies an upside of 11.45% from the current price of $51.18. More detailed estimate data can be found on the Cameco Corp (CCJ) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Cameco Corp's (CCJ, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cameco Corp (CCJ, Financial) in one year is $49.12, suggesting a downside of 4.03% from the current price of $51.18. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cameco Corp (CCJ) Summary page.
CCJ Key Business Developments
Release Date: May 01, 2025
- Revenue: Up 24% in Q1 2025.
- Gross Profit: Increased by 44% in Q1 2025.
- Adjusted Net Earnings: Up 52% in Q1 2025.
- Adjusted EBITDA: Increased by 5% in Q1 2025.
- Westinghouse Segment Net Loss: Expected annual net loss of $20 million to $70 million in 2025.
- Westinghouse Adjusted EBITDA: Improved by 19% compared to Q1 last year.
- Uranium Production: 6 million pounds in Q1 2025, slightly higher than 5.8 million pounds in Q1 last year.
- Fuel Services Production: Up 5% over Q1 last year.
- Long-term Uranium Price: Increased from $68 per pound in January 2024 to around $80 per pound.
- Cash Flow: Strong cash flow generation expected in 2025.
- Term Loan Repayment: Final repayment of USD200 million made in January 2025.
- Cash Distribution from Westinghouse: USD49 million received in February.
- Cash Dividend from JV Inkai: USD87 million net of withholdings received in April.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cameco Corp (CCJ, Financial) reported a strong financial performance in Q1 2025, with revenue up 24%, gross profit up 44%, and adjusted net earnings up 52%.
- The company successfully repaid the remaining USD 200 million of a USD 600 million term loan used for the Westinghouse acquisition, indicating a strong balance sheet.
- Cameco Corp (CCJ) is well-positioned in the nuclear fuel cycle with premier Tier 1 assets and investments across the reactor life cycle.
- The long-term demand outlook for nuclear energy remains positive, with significant commitments to nuclear energy projects globally, including new reactor approvals in China and Poland.
- Cameco Corp (CCJ) maintains a strong cash flow generation outlook for 2025, supported by a disciplined financial strategy and a robust contract portfolio.
Negative Points
- The uranium market is experiencing a lack of long-term utility contracting necessary to support both brownfield expansion and new projects.
- Cameco Corp (CCJ) faces ongoing geopolitical and trade policy uncertainties, including potential tariffs and Section 232 investigations in the US.
- The Westinghouse segment reported a net loss in Q1 2025 due to normal quarterly variations and ongoing amortization of intangible assets.
- There are risks associated with the production targets at JV Inkai, including ongoing acid and supply chain challenges.
- The company remains in supply discipline, indicating that the uranium segment has not yet reached replacement rate contracting, which requires financial conservatism.
