Jefferies Initiates Bullish Coverage on Cameco (CCJ) Stock with $138 Target

TLDR

• Jefferies launched coverage on Cameco (CCJ) with a Buy recommendation and $138 share price target (C$190)
• Shares jumped 3.4% Thursday in response to the favorable analyst initiation
• BWX Technologies (BWXT) also received a Buy rating from Jefferies with a $181 target
• Wellington Management purchased 2.09 million CCJ shares in the second quarter, worth roughly $212.9 million
• Second quarter earnings disappointed, with Cameco posting $0.13 EPS versus the $0.26 analyst consensus

Shares of Cameco (CCJ) advanced 3.4% Thursday following Jefferies‘ decision to begin coverage with a Buy recommendation and establish a $138 share price objective, equivalent to C$190. Analyst Laurence Alexander highlighted the company’s standing as a top-tier global uranium fuel supplier as the foundation for the optimistic outlook.

Cameco Corporation, CCJ

Alexander emphasized expanding nuclear energy demand as the primary catalyst driving the industry forward. He observed that over 30 nations have committed to tripling their nuclear generation capacity by mid-century, while major technology companies are securing baseload power agreements to support artificial intelligence operations.

“With operational excellence and robust financial health, Cameco stands positioned as, in our assessment, a leading beneficiary of Western nuclear expansion,” Alexander stated.

The investment firm employed a sum-of-the-parts methodology for its valuation framework. Jefferies assigned $63 per share to upstream operations, $11 per share to conversion facilities, $7 per share to undeveloped assets and corporate functions, and $51 per share to the company’s strategic Westinghouse collaboration with the federal government.

BWX Technologies (BWXT) similarly benefited from Jefferies’ coverage Thursday, advancing 1.2% following a Buy rating paired with a $181 price objective. Alexander emphasized BWXT’s unique position as the exclusive provider of naval nuclear reactor components and fuel systems to the U.S. Navy.

The firm anticipates BWX Technologies will achieve 6% to 7% revenue expansion and 13% to 17% earnings per share growth extending through 2030.

Major Institutions Building Positions

Wellington Management Group established a fresh stake in Cameco throughout the second quarter, accumulating 2.09 million shares worth approximately $212.9 million. This transaction grants Wellington roughly a 0.48% ownership interest in the uranium producer.

Additional institutional players have similarly been increasing their holdings. Temasek Holdings initiated a new position in the first quarter valued at $70.9 million. Sumitomo Mitsui Trust Group expanded its holding by 35.2%, while Janus Henderson Group more than doubled down, increasing its stake by 102.3%. Institutional ownership of Cameco now stands at 70.21%.

Recent Quarterly Results Disappoint

Notwithstanding the positive sentiment from Wall Street analysts, Cameco’s latest quarterly performance fell short of expectations. The uranium supplier reported second quarter earnings of $0.13 per share, significantly below the $0.26 analyst consensus projection. Revenue totaled $573.1 million, reflecting a 6.8% year-over-year decline and missing the $579.6 million estimate.

This represents a notable drop from the $0.71 EPS achieved in the corresponding quarter of the previous year.

The Street currently anticipates Cameco will deliver $1.27 in earnings per share for the complete fiscal year.

The overall analyst community maintains a favorable stance on the stock. Thirteen analysts maintain Buy recommendations on CCJ, while five hold a Hold rating, resulting in a “Moderate Buy” consensus view. The mean price target stands at $145.68.

Truist Financial elevated its target to $130 last August while maintaining a Buy recommendation. Bank of America modestly reduced its target from $143 to $140 but retained its Buy stance. Scotiabank continues with an Outperform rating alongside a $175 objective.

CCJ trades within a 52-week range spanning $73.20 to $135.24, with shares positioned around $98.75 heading into Thursday’s session.