Cameco (CCJ) Anticipates 75% Annual Growth Over Next Five Years Amid Nuclear Market Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
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Source: Fool
- Nuclear Market Recovery: Constellation Energy's announcement to reopen the Three Mile Island plant in 2024 to support Microsoft data centers has sparked significant investor interest in nuclear stocks, leading to substantial increases in valuations across the sector.
- Profitability Improvement: Cameco's production cost for uranium is projected to be below $46 per pound in 2025, while the current spot price exceeds $85, allowing the company to maintain a competitive edge and anticipate a 75% annual growth rate over the next five years.
- Strong Financial Performance: Cameco reported a net income of $378 million over the past 12 months, and its free cash flow is nearly double this amount, indicating robust cash generation capabilities despite a market cap exceeding $50 billion.
- Significant Contribution from Westinghouse: Cameco's Westinghouse Electric division generated $1.8 billion in revenue in 2023 and is expected to benefit from an $80 billion investment in nuclear power in the U.S., further solidifying its leadership position in the nuclear energy market.
Analyst Views on CCJ
Wall Street analysts forecast CCJ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCJ is 105.67 USD with a low forecast of 71.80 USD and a high forecast of 118.78 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 125.970
Low
71.80
Averages
105.67
High
118.78
Current: 125.970
Low
71.80
Averages
105.67
High
118.78
About CCJ
Cameco Corporation is a provider of uranium fuel to generate baseload electricity around the globe. Its segments include uranium, fuel services and Westinghouse. The uranium segment involves the exploration for, mining, milling, purchase and sale of uranium concentrate. The fuel services segment involves the refining, conversion and fabrication of uranium concentrate and the purchase and sale of conversion services. The Westinghouse segment reflects its earnings from this equity-accounted investment. Westinghouse is a nuclear reactor technology original equipment manufacturer and a global provider of products and services to commercial utilities and government agencies. It provides outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. It has two operating mines, Cigar Lake and McArthur River as well as a mill at Key Lake. It also has ownership interests in Global Laser Enrichment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
