WEBULL

Why Cameco (TSX:CCO) Is Up 6.4% After Expanding Its U.S. Nuclear Reactor Partnership - And What's Next

Simply Wall St · 5d ago
  • Cameco has recently been highlighted for its role in a partnership with Westinghouse Electric, Brookfield Asset Management, and the U.S. government to develop more than US$80 billion of new nuclear reactors across the United States, expanding its reach along the nuclear value chain.
  • This collaboration increases Cameco’s exposure beyond uranium mining into reactor technology and services via its 49% stake in Westinghouse, potentially broadening and diversifying its future revenue sources.
  • We’ll now examine how this large-scale U.S. reactor build-out plan via Westinghouse could influence Cameco’s existing investment narrative.

AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Cameco Investment Narrative Recap

To own Cameco, you really need to believe in a durable expansion of nuclear power and uranium demand, with the company benefiting from both fuel supply and services. The US$80 billion Westinghouse reactor program fits that thesis but does not remove near term risks around delayed final investment decisions and potential production issues at core mines, which still look like the key short term swing factors for the business.

Among recent updates, Cameco’s 2025 consolidated guidance, with uranium production share targeted up to 20 million pounds, ties directly into this U.S. reactor build out story by showing how management is planning around expected demand. That target also underlines the operational execution risk: hitting those production levels consistently matters if Cameco is to fully benefit from any uplift in long term contracting that projects like Westinghouse’s could support.

But alongside this growth story, investors should also be aware of the risk that delays in new reactor investment decisions could...

Read the full narrative on Cameco (it's free!)

Cameco's narrative projects CA$3.9 billion revenue and CA$1.2 billion earnings by 2028. This requires 2.6% yearly revenue growth and about a CA$666 million earnings increase from CA$533.6 million today.

Uncover how Cameco's forecasts yield a CA$150.81 fair value, a 11% upside to its current price.

Exploring Other Perspectives

TSX:CCO 1-Year Stock Price Chart
TSX:CCO 1-Year Stock Price Chart

Eleven fair value estimates from the Simply Wall St Community span roughly CA$80 to CA$151 per share, showing how widely opinions can differ. Set against this, ongoing delays and bottlenecks in final investment decisions for new nuclear projects could be a key factor shaping Cameco’s actual growth path, so it is worth comparing several viewpoints before deciding how this story fits your portfolio.

Explore 11 other fair value estimates on Cameco - why the stock might be worth as much as 11% more than the current price!

Build Your Own Cameco Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Cameco research is our analysis highlighting 2 key rewards that could impact your investment decision.
  • Our free Cameco research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cameco's overall financial health at a glance.

Interested In Other Possibilities?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.