RE:CIBC Raise Target Updating his price deck assumptions, CIBC World Markets analyst Bryce Adams said uranium is his “preferred commodity” moving forward.
“We continue to expect nuclear energy, a scalable, low-carbon energy source, to be key in reducing global dependency on fossil fuels as efforts to curb climate change persist,” he said.. In our view, Cameco offers investors Tier 1 assets, with premium jurisdictional exposure, a significant reserve base, and a strong balance sheet. Cameco’s investor day is scheduled for December 19.”
Coming off research restriction, Mr. Adams named Cameco Corp. ) as his “top pick” and raised his target for its shares to $72 from $68.50 with an “outperformer” rating. The average is $68.34.
“On our view, the Westinghouse transaction has elevated Cameco from a tier-one uranium producer with a strong uranium conversion business into a one-stop shop for utilities (and nations) looking for reliable nuclear fuel supply,” he said. “This transaction is a step change to Cameco’s outlook, and further extends its downstream uranium and nuclear capabilities. Cameco has created a wide moat within the nuclear energy space, and we now view Cameco as a go-to name in nuclear, compared to a go-to name in uranium prior to this transaction.”