Raymond James Raises Target Updating his forecast to account for the increase in uranium price and a “positive” demand outlook, Raymond James’ Brian MacArthur increased his Cameco Corp. target to $56 from $52 with an “outperform” rating. The average is $53.89.
“We believe Cameco provides investors with lower-risk exposure to the uranium market given its diversification of uranium sources,” he said. “These sources are supported by a portfolio of long-term contracts that provide some downside protection in periods of depressed spot uranium prices, while maintaining optionality to higher uranium prices. In addition, the company has multiple operations curtailed that can be brought back should uranium prices increase. Although the 2021 tax court decision applies only to the 2003, 2005, and 2006 tax years, we view it as a positive for CCO given we believe it will be relevant in determining the outcome for other years and reduces risk related to the CRA dispute.”