Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 8 Sep, 25 | CCJ | Buy | USD 75.52 | USD 79.3 | USD 83.07 | 1 day | Closed |
5.01%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Cameco Corporation provides uranium for the generation of electricity. It operates through three segments: Uranium, Fuel Services, and Westinghouse. The Uranium segment engages in the exploration for, mining, milling, purchase, and sale of uranium concentrate. The Fuel Services segment is involved in the refining, conversion, and fabrication of uranium concentrate, as well as purchase and sale of conversion services. The Westinghouse segment operates as a nuclear reactor technology original equipment manufacturer and a provider of products and services to commercial utilities and government agencies. It also provides outage and maintenance, engineering support, instrumentation and control equipment, and plant modification services, as well as components and parts to nuclear reactors. The company sells its uranium and fuel products and services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is based in Saskatoon, Canada.
Profitability Surge: Net earnings grew from CAD 36 million in Q2 2024 to CAD 321 million in Q2 2025, marking a more than eightfold increase
Revenue Growth: Consolidated revenue increased by 47% year-over-year, rising from CAD 598 million in Q2 2024 to CAD 877 million in Q2 2025
Higher Production Costs: Cash production cost per pound increased 54%, from CAD 16.96 in Q2 2024 to CAD 26.19 in Q2 2025, reflecting the impact of maintenance shutdowns and lower output
Production Decline: Uranium production volume dropped 35%, falling from 7.1 million pounds in Q2 2024 to 4.6 million pounds in Q2 2025, due to planned maintenance at Key Lake
Cameco faces investment risk from operational uncertainties such as production delays at McArthur River/Key Lake, rising unit production costs, and potential disruption in long-term uranium contracting due to geopolitical and trade policy pressures.
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 75.52 | 67.0 | 79.3 | 83.07 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Financial Performance Across Segments: Cameco Corporation (NYSE: CCJ) reported robust financial results for the second quarter ended June 30, 2025, reflecting strength across its uranium, fuel services, and Westinghouse segments. The company delivered net earnings of CAD 321 million, adjusted net earnings of CAD 308 million, and adjusted EBITDA of CAD 673 million, representing significant year-over-year growth compared to the same period in 2024. For the first half of 2025, net earnings reached CAD 391 million, with adjusted EBITDA totaling CAD 1.0 billion, underscoring the resilience of Cameco’s integrated strategy and diversified portfolio.
Uranium Segment Performance: In its core uranium operations, Cameco recorded a 47% increase in revenue to CAD 705 million during the quarter, driven by a 40% rise in sales volumes and stronger realized prices. Earnings before income taxes grew by 46% year-over-year, while adjusted EBITDA increased by 43%. However, production volumes declined 35% to 4.6 million pounds, primarily due to planned maintenance at the Key Lake mill, which also contributed to a 54% increase in cash production costs per pound. Despite these challenges, the uranium segment demonstrated resilience by capitalizing on favorable market pricing and stronger contract deliveries.
Fuel Services Growth: The fuel services segment posted strong results, with revenue increasing 37% year-over-year to CAD 162 million in Q2 2025. Sales volumes grew 52% compared to the prior year, driving a 33% increase in earnings before income taxes and a 36% increase in adjusted EBITDA. For the first half of the year, adjusted EBITDA nearly doubled to CAD 132 million, benefiting from higher sales, improved realized prices, and lower cost of sales. Although the average realized price per kilogram uranium declined 8% year-over-year in the quarter, volume growth more than offset the impact, leading to overall margin strength.
Westinghouse Contribution: Cameco’s 49% ownership in Westinghouse provided a material uplift to consolidated results. In the second quarter of 2025, Cameco’s share of Westinghouse’s net earnings amounted to CAD 126 million, compared with a net loss of CAD 47 million in the same period of 2024. Adjusted EBITDA from Westinghouse rose to CAD 352 million, largely driven by CAD 170 million (US) in incremental revenue associated with its participation in the Dukovany nuclear reactor project in the Czech Republic. This development improved Cameco’s full-year outlook for Westinghouse, with its share of adjusted EBITDA now expected to range between CAD 525 million and CAD 580 million (US).
Strengthened Balance Sheet and Outlook: Cameco exited the quarter with a strong balance sheet, holding CAD 716 million in cash and CAD 1.0 billion in total debt, supported by an undrawn CAD 1.0 billion revolving credit facility. Operating cash flow increased 79% year-over-year to CAD 465 million in the quarter, providing financial flexibility to pursue disciplined investments and support its contracting strategy. The company also secured a new Moody’s issuer rating of Baa2 with a stable outlook, which expands debt ratings coverage and enhances access to future financing opportunities.
Contracting Discipline and Long-Term Market Position: As of June 30, 2025, Cameco had secured long-term delivery commitments averaging approximately 28 million pounds annually between 2025 and 2029. While uranium contracting activity slowed during the first half of the year due to global trade uncertainties and geopolitical tensions, the company continues to benefit from a strong pipeline of business opportunities. Management emphasized that Cameco’s contract portfolio provides downside protection while maintaining exposure to future uranium price improvements.
Leadership Transition: In line with its succession planning, Cameco announced key leadership changes effective September 1, 2025. Grant Isaac will assume the role of president and chief operating officer, while Heidi Shockey will become senior vice-president and chief financial officer. Liam Mooney will be appointed senior vice-president and chief legal officer. Tim Gitzel will continue as chief executive officer. Two senior executives, Sean Quinn and Brian Reilly, will transition into advisory roles before retiring in 2026. These changes reinforce the company’s commitment to strategic execution and long-term value creation.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Cameco (NYSE: CCJ) at the current market price of USD 75.52, as on September 08, 2025 at 7:20 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Uranium
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CCJ Cameco Corp |
-2.4 2.76% | 84.65 | 125.05 | 57.80 | 6.80 | 4.81 | 9.68 | 41.12 |
| NATKY JSC National Atomic Company Kazatomprom |
-1.83 3.33% | 53.10 | 14.26 | 15.75 | 0.0096 | 3.56 | 0.0093 | 0.02 |
| SRUUF Sprott Physical Uranium Trust |
-0.19 1.05% | 17.94 | 25.19 | 13.00 | 636.01 | 1.79 | 1968.60 | -177.8571 |
| NXE NexGen Energy Ltd. |
-0.2473 2.93% | 8.19 | - | - | - | 7.30 | -31.2142 | |
| UEC Uranium Energy Corp |
-0.58 4.78% | 11.56 | 674.00 | 158.73 | 23.17 | 3.64 | 22.96 | 523.11 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 08,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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