Cameco: Great Asset, Modest Upside

Summary

• I maintain a Hold rating on Cameco with a $79 price target for 2026, citing limited near-term upside after the recent rally.
• Cameco’s 49% stake in Westinghouse boosts earnings visibility and reduces commodity risk, but valuation is hampered by poor disclosure and one-time settlements.
• Uranium market fundamentals are strong, but supply disruptions and contract lags mean realized prices trail spot, limiting immediate earnings growth.
• Valuation is stretched at 43x P/CE; while long-term prospects are solid, commodity volatility and Kazatomprom risks warrant patience before adding to positions.

FooTToo

Introduction

As part of the decarbonization, electrification, climate change, and AI/data center demand, I searched for energy sources that could benefit from the increased demand. I concluded that nuclear is the future of clean and cheap energy. Uranium is the primary pillar of the

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.