Cameco (CCJ) remains well positioned to benefit from strong nuclear energy and uranium market fundamentals, RBC Capital Markets said in a note Friday.
"We continue to see favorable tailwinds in nuclear and
uranium, with Cameco best-positioned to benefit with tier 1 uranium assets and ownership in Westinghouse," the note said.
The report said good momentum in uranium price strength is expected to continue through the next 6-12 months as uranium contracting activity picks up seasonally.
The note pointed to growth driven by re-investment into the existing nuclear fleet and AP1000 new builds.
"We also see Westinghouse as a unique asset with no direct publicly-traded peer which we think justifies a premium valuation," the report said. RBC kept its outperform rating.
Price: $89.43, Change: $+3.05, Percent Change: +3.53%