Cameco Corporation

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Bullish +75

Invest in Cameco to buy in to the nuclear renaissance - MoneyWeek

📈 Cameco is positioned to benefit from a projected global uranium supply shortfall starting in 2033, with production expected to be only 50% of demand by 2041.

💰 The company reported 2025 revenue up 11% to $3.5 billion and adjusted diluted earnings per share up 321% to C$1.44.

🤝 Cameco signed a nine-year agreement in March 2026 with India to supply nearly 22 million pounds of uranium ore, valued at an estimated C$2.6 billion.

🔋 Uranium prices rose to an average of C$91.3 per pound in Q4 2025, with long-term contract prices anticipated to reach a ceiling of C$200 by 2033.

⚛️ Cameco holds a 49% stake in Westinghouse Electric Company, which is developing small modular reactors and securing US government financing for new builds worth at least $80 billion.

🔬 The company owns a 49% interest in Global Laser Enrichment (GLE), which holds an exclusive license for third-generation laser enrichment technology (SILEX).

🌍 There are currently 70 new nuclear reactors under construction globally, with 115 more planned, supporting the transition to zero-carbon baseload power.

📉 Analysts project a one-year share price target of C$185 for Cameco, which recently traded at C$123.

🏦 Cameco maintains a strong balance sheet with net cash of C$0.2 billion and a forward yield of 0.19%.

📊 The company's vertical integration spans the entire spectrum from uranium exploration and mining to fuel fabrication and reactor servicing.

Bullish Signals
  • Cameco is well-positioned for long-term growth due to a structural global supply deficit expected to widen significantly after 2033, allowing the firm to raise production and capture higher pricing power.
  • The company's adjusted diluted earnings per share surged 321% in 2025 to C$1.44, driven by rising uranium prices and strong operational performance.
  • Cameco secured a massive nine-year contract with India worth an estimated C$2.6 billion, providing revenue visibility extending into the late 2030s.
  • Strategic stakes in Westinghouse Electric Company and Global Laser Enrichment (GLE) offer diversified growth opportunities through reactor construction services and advanced enrichment technology.
  • The US government is facilitating financing for new nuclear reactors to power AI-heavy data centers, creating a potential IPO opportunity for Westinghouse that could value it at $15 billion-$35 billion.
  • Cameco's long-term contract strategy insulates it from spot market volatility while capturing value-added margins through its fuel-manufacturing division.
  • Global demand for zero-carbon baseload power is accelerating, with 38 countries signing a declaration to triple nuclear generating capacity by 2050.
Full Analysis
MoneyWeek highlights Cameco (NYSE: CCJ) as a key beneficiary of the global nuclear renaissance, driven by rising demand for zero-carbon baseload power to support AI data centers and geopolitical supply chain uncertainties. The article notes that while uranium prices are already rising, a significant supply shortfall is expected from 2033 onwards, with production projected to meet only half of demand by 2041. This structural deficit positions Cameco to capture higher margins through its long-term contract strategy rather than relying on volatile spot markets. Cameco's financial performance has been robust, with 2025 revenue increasing 11% to $3.5 billion and adjusted diluted earnings per share surging 321% to C$1.44. The company secured a major nine-year agreement in March 2026 with India to supply nearly 22 million pounds of uranium ore, valued at an estimated C$2.6 billion. Analysts project long-term contract prices reaching up to C$200 per pound by 2033, reflecting the tightening supply landscape and growing global fleet of nuclear reactors. Beyond mining, Cameco benefits from its vertical integration through a 49% stake in Westinghouse Electric Company, which is developing small modular reactors and securing US government financing for new builds worth at least $80 billion. Additionally, Cameco holds a 49% interest in Global Laser Enrichment (GLE), which possesses an exclusive license for third-generation laser enrichment technology (SILEX). These strategic partnerships and technological assets provide multiple growth drivers alongside the core uranium supply business.