Post by
lithomon on Feb 07, 2022 4:41pm
CIBC - Nuclear Energy, Scalable, Low-Carbon Energy Source
Fair assessment of the Uranium market and new production entrants, the likes of Global Atomic:
The Globe and Mail reports in its Thursday, Jan. 20, edition that CIBC World Markets analyst Bryce Adams began coverage of Cameco with an "outperformer" rating and $37 share target seeing it "well positioned" for shifting fundamentals in the uranium market.
The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $35.10. Mr. Adams says in a note: "We 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. In our view, Cameco offers investors Tier 1 assets, with premium jurisdictional exposure, a significant reserve base, a strong balance sheet, and a reasonable valuation. More than 10 years have passed since the March, 2011, Fukushima-Daiichi nuclear accident in Japan and the ensuing excess supply and inventory build that suppressed uranium market fundamentals for most of the 2010s. Recently, market fundamentals have shifted and new financial players have entered the space. We forecast a near-term market deficit and a $50 (U.S.)/lb uranium price in 2022E, increasing to our $55 (U.S.)/lb long-term price in 2024E."