UBS on Monday initiated coverage of Cameco (CCO.TO, CCJ) with a neutral rating and a C$140.00

"We initiate coverage of Cameco Corp (CCO.TSX) with a Neutral rating and C$140/sh price target. Cameco offers high quality exposure to the uranium thematic, which we think looks attractive medium-long term with demand CAGR>3.5% and upside skew to uranium prices. Cameco's earnings should grow significantly this decade as it re-contracts sales at increasingly higher spot prices, while Westinghouse captures contracts on new build nuclear reactors. We think the fundamental narrative and earnings upcycle is strong, with consensus prices and earnings likely to be upgraded. However, recent headlines and positive catalysts have pushed the shares higher (+23% 3mth & +72% YTD) and it trades near full on most valuation metrics and is pricing ~$110/lb real uranium in our 1.5x NAV. We expect spot uranium prices to climb higher in 2026, with a potential inventory restocking cycle driving prices; however we remain on the sidelines given the recent momentum and trading premium," the investment bank wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 131.93, Change: +2.50, Percent Change: +1.93