BMO Capital Markets on Friday maintained its outperform rating on the shares of Cameco (CCO.TO, CCJ) and its C$120.00 price target after the uranium miner warned of lower than expected output from its McArthur River mine in northern Saskatchewan.

"Cameco had flagged risks to McArthur's production this year, but the magnitude of the drop in guidance (~19%) is surprising. While EBITDA changes are limited (FY25 -3%), Cameco is now likely to purchase more U3O8 from third parties impacting FCF a touch (-5%). However, perhaps more significantly, the supply deficit increases, which is likely to have a positive impact to uranium pricing particularly heading into the World Nuclear Symposium next week, could be the positive catalyst needed for increased contracting and another leg-up in sentiment," analyst Alexander Pearce 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: 105.35, Change: -2.79, Percent Change: -2.58