Cameco Corporation ($CCJ) Stock: Surges Over 11% as BMO Capital Raises Price Target

TLDR

Cameco stock rises over 11% to $67.41 after BMO Capital increases its price target. Strong Q1 2025 earnings with 24% revenue growth and 52% higher adjusted net earnings. Westinghouse EBITDA expected to rise significantly due to the Czech Republic nuclear project. Positive long-term nuclear energy demand outlook, despite uranium market challenges. Next earnings are scheduled between July 29 and August 4, 2025.

Cameco Corporation (NYSE: CCJ) stock surged 11.59% to $67.41 in morning trading on June 9, 2025, after BMO Capital lifted its price target for the uranium producer.

Cameco Corporation (CCJ)

The new target was raised from C$85 to C$95, while the Outperform rating was maintained. This vote of confidence follows a strong Q1 performance and improving prospects for Cameco’s Westinghouse segment.

Strong Q1 2025 Results Bolster Investor Sentiment

Cameco’s first-quarter results highlighted its operational strength. Revenue rose 24%, gross profit climbed 44%, and adjusted net earnings soared 52%. Adjusted EBITDA increased by 5% compared to the prior year. Uranium production also slightly improved, reaching 6 million pounds versus 5.8 million pounds last year. Fuel services production was up 5%.

The uranium price trend supports Cameco’s outlook. The long-term uranium price rose from $68 per pound in January 2024 to about $80 per pound, a positive development for future profitability. The company also reported strong cash flow expectations for 2025, after repaying its final USD 200 million term loan related to the Westinghouse acquisition. Additional cash inflows included USD 49 million from Westinghouse and USD 87 million from its JV Inkai.

Westinghouse Segment Boosts Future Prospects

Cameco expects its share of Westinghouse’s 2025 adjusted EBITDA to grow by around $170 million. This is linked to Westinghouse’s role in building two nuclear reactors at the Dukovany plant in the Czech Republic. This project, along with anticipated fuel fabrication services, could lift Westinghouse’s adjusted EBITDA growth rate to between 6% and 10% annually over five years.

💥Cameco (TSX: $CCO NYSE: $CCJ) reports an expected increase of ~US$170 million in its 49% equity share of Westinghouse Electric's 2025 Q2 & annual adjusted EBITDA, tied to construction of 2 #Nuclear reactors in the #CzechRepublic.💰🇨🇦⚛️🏗️🇨🇿🤠🐂#Uranium 🏄 https://t.co/9Luye8GR0J pic.twitter.com/PEywEhCIl9

— John Quakes (@quakes99) June 8, 2025

 

Despite the positive developments, the Westinghouse segment reported an expected annual net loss of $20 million to $70 million for 2025. Normal quarterly fluctuations and amortization of intangible assets contributed to this result.

Market Risks Remain

Despite optimism, Cameco faces industry challenges. The uranium market is still marked by limited long-term utility contracting. Geopolitical risks, such as U.S. tariffs and Section 232 investigations, add further uncertainty. The company also flagged operational risks at JV Inkai related to acid supply and other logistical factors.

Cameco remains cautious with its production strategy, reflecting its conservative financial approach. The company’s uranium segment has yet to secure replacement rate contracting, underscoring market fragility.

Stock Valuation and Performance Overview

Cameco’s valuation remains high, with a trailing P/E ratio of 145.02 and a forward P/E of 66.67. Its five-year return stands at a robust 539.17%, far outpacing the S&P/TSX Composite Index’s 66.71%. The stock’s next earnings report is scheduled between July 29 and August 4, 2025.

Despite market headwinds, Cameco’s strong Q1 and Westinghouse developments suggest a positive medium-term outlook.

 

The post Cameco Corporation ($CCJ) Stock: Surges Over 11% as BMO Capital Raises Price Target appeared first on CoinCentral.