Cameco Maintained at Buy at Stifel Canada Following TEPCO Cigar Lake Stake Buy; Price Target Kept at C$180
Stifel Canada on Tuesday maintained its buy rating on the shares of uranium producer Cameco (CCO.TO, CCJ) and its C$180.00 price target after the company and partner Orano acquired TEPCO's minority stake in the Cigar Lake operations in norther Saskatchewan."A good deal for Cameco. Cameco (with Orano) has agreed to acquire TEPCO's 5% participating interest in the Cigar Lake JV, lifting Cameco's ownership by 2.871% to 57.418% (Orano goes to 42.582%) for $115.75Mln (Cameco's share). Closing is expected in Q3/26 - subject to regulatory approval and customary conditions. The acquisition price implies a discounted 'clean-up' transaction of a Tier-One asset. The $115.75Mln paid for Cameco's incremental 2.871% implies a $4.03Bln Cigar Lake valuation (100% basis) vs. our NPV8% of $8.91Bln NPV (based on an LT uranium price assumption of $120/lb) and a transaction multiple of just 0.45x P/NPV. We estimate the deal is +0.5% accretive to our NAVPS and +3.3% accretive to FY27 EPS, while adding ~0.5Mln lbs/yr of attributable uranium production and ~5Mln lbs of attributable proven and probable uranium reserves at an in-situ acquisition price of US$17/lb," analyst Ralph Profiti noted.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $167.01, Change: $+11.17, Percent Change: +7.17%