Cameco (CCJ) Stock Forecast & Price Target

Cameco Corp has adjusted its net asset value per share (NAV/sh) estimate to $66, reflecting the potential growth from new nuclear projects in the U.S. and Korea, while maintaining a 1.5x price-to-NAV multiple due to anticipated nuclear expansion and an upward trajectory in uranium prices. The company boasts some of the best uranium production assets globally, characterized by high grades and low costs, positioning it to enhance production as market conditions improve. Furthermore, Cameco's strategic involvement in the Westinghouse segment and its ownership stakes in key ventures like Global Laser Enrichment support its favorable outlook amidst a tight uranium market and increasing demand for nuclear energy.

Cameco's negative outlook is largely driven by a potential decline in nuclear sector growth and weaker-than-expected uranium prices, leading to a downside scenario of $60. Key risks include a pending CRA transfer pricing dispute, possible contract cancellations, and production disruptions, all of which could substantially impact financial performance. Additionally, currency volatility, particularly between CAD and USD, as well as dwindling investor sentiment in the uranium market, pose significant threats to the company's valuation.