Cameco has considerable room to run after announcing an $80 billion deal with the U.S. government, according to Bank of America. The bank, which has a buy rating on shares, raised its price target for Cameco to $130 per share. That signals 21.6% upside from Tuesday’s close on the U.S.-listed stock. Cameco announced Tuesday a partnership with the U.S. government to build several nuclear reactors, alongside Westinghouse and Brookfield Asset Management. The deal came after U.S. President Donald Trump issued in May a series of executive orders to revitalize the country’s uranium production and bolster its fuel supply chain. CCJ 6M mountain CCJ 6-mo chart “We see this as just a starting point,” analyst Lawson Winder said Tuesday in a note to clients. “The higher multiples recognize significantly improving future growth from CCJ’s 49% interest in WEC and are just off historical peaks.” Trump’s directives have created major tailwinds for Cameco, which could lift its shares over the next several years, according to BofA. Upside risks highlighted by the analyst include: “additional potential mine disruptions that may further improve supply-demand dynamics;” “better pace of reactor development in key future demand countries (China, Japan, and India);” and “more stringent carbon emissions restrictions in key countries, encouraging nuclear power as an environmentally friendly base line energy source.” However, Winder noted that slower demand growth for nuclear energy could dent the stock. BofA’s rating on Cameco falls in line with consensus on Wall Street. Of the 14 analysts that cover the stock, 12 have a buy or strong buy on shares, LSEG data shows. Cameco U.S.-listed shares are up 133% over the past six months.
