Cameco (CCJ) is best-positioned to benefit from a strong nuclear sector growth momentum and a positive uranium price outlook, RBC Capital Markets said in a Monday report.
The note said the firm is recording robust interest for uranium from sovereign buyers and larger utilities, with contracts settlement prices above reported term prices.
Looking ahead, Cameco expects sustained uranium demand growth as new reactor projects look to secure initial reactor loads, the note said.
"We raise our uranium price forecasts by ~10%, with our long-term price rising to $110/lb, from $100/lb," the report said.
The report also pointed to recent US and Canadian government policy initiatives that are supportive for deployment of the
Westinghouse AP1000 large nuclear reactor design.
RBC kept its outperform rating while raising its price target to CA$175 ($123) from CA$160.
Price: $102.01, Change: $-2.48, Percent Change: -2.37%