Cameco (CCJ) Set to Benefit from Rising Nuclear Demand, Projecting $87 per Pound Uranium Price in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Surge in Uranium Demand: The shift by utilities towards strategic stockpiling has led to a 40% increase in long-term contracting volume over the past year, with Cameco projecting an average realized price of $87 per pound for uranium in 2025, a 7.3% increase from last year, significantly enhancing revenue potential.
- Geopolitical Supply Risks: Following Russia's invasion of Ukraine, Western utilities are reducing reliance on Russian uranium, positioning Cameco to benefit from its high-grade mines in Saskatchewan, which are crucial for meeting the growing market demand amid supply constraints.
- Westinghouse Stake Advantage: Cameco's 49% ownership in Westinghouse, coupled with an $80 billion agreement with the U.S. government to support new reactor construction, strengthens its position in the nuclear value chain and provides additional revenue streams from service and maintenance.
- Long-Term Growth Potential: Analysts project a 48% earnings growth for Cameco next year and another 33% the following year, with the expiration of Russian uranium import waivers in 2028 further enhancing its long-term growth outlook, likely driving the stock price higher.
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: 116.440
Low
71.80
Averages
105.67
High
118.78
Current: 116.440
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.
