Update shared on 23 Nov 2025
Fair value Increased 3.63%Cameco's analyst price target has been raised from $146.44 to $151.75, with analysts pointing to improved revenue growth forecasts and margin expectations as key drivers of the increased valuation.
Analyst Commentary
Analyst reactions to Cameco's revised price target reflect a blend of optimism and caution, with most emphasizing the implications for the company’s growth trajectory, profitability, and market positioning.
Bullish Takeaways- Bullish analysts have highlighted improved revenue growth forecasts. They view the company’s updated guidance as supportive of an upward valuation revision.
- Expectations for stronger operating margins have led to greater confidence in Cameco’s long-term profitability and ability to generate sustainable earnings.
- Analysts indicate that Cameco is positioned to benefit from an improving macroeconomic backdrop, including potential tailwinds from shifts in global energy demand.
- Some see execution on key projects and a disciplined financial approach as additional sources of momentum for Cameco’s share performance going forward.
- Bearish analysts remain cautious about the pace and durability of revenue growth, particularly in the context of shifting commodity prices and evolving regulatory landscapes.
- There are concerns regarding market volatility and its impact on Cameco’s ability to consistently meet elevated earnings targets.
- Uncertainties around global demand and competition from alternative energy sources could pose challenges to sustaining current valuation multiples.
What's in the News
- Cameco announced an annual dividend increase to CAD 0.24 per common share, payable on December 16, 2025. (Company filing)
- The company issued consolidated 2025 guidance, targeting revenue between $3.3 billion and $3.55 billion. The company projects up to 20 million pounds of U3O8 production. (Company guidance)
- Cameco reported third-quarter uranium production of 4.4 million pounds, up slightly from last year. However, nine-month output fell to 15.0 million pounds compared to 17.3 million pounds a year prior. (Operating results)
- A new strategic partnership was established between Cameco, Brookfield Asset Management, and the US Department of Commerce to accelerate deployment of Westinghouse Electric's nuclear reactor technologies. The anticipated investment in the partnership exceeds $80 billion. (Company announcement)
- Cameco entered into a long-term supply agreement with Slovenske elektrarne to provide natural uranium hexafluoride for nuclear power plants in Slovakia through 2036. (Client announcement)
Valuation Changes
- Consensus Analyst Price Target increased from CA$146.44 to CA$151.75, reflecting a modest upward adjustment.
- Discount Rate edged down marginally from 6.12% to 6.12%.
- Revenue Growth forecast rose from 5.57% to 6.29%, indicating higher expected sales momentum.
- Net Profit Margin increased slightly, moving from 36.12% to 36.43%.
- Future P/E ratio increased from 51.83x to 52.05x. This suggests a minor expansion in valuation multiples.
Disclaimer
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