Cameco Stock Rises After Analysts Raise Price Target On Westinghouse Earnings Upswing, Retail’s Extremely Bullish
Synopsis
On Friday, the uranium fuel producer expected an increase of about $170 million for its 49% equity share of Westinghouse’s second-quarter and annual adjusted core earnings.
Cameco stock (CCJ) jumped 10.7% on Monday after analysts raised the price target based on higher earnings potential at Westinghouse, a company it co-owns with Brookfield Renewable Partners.
On Friday, the uranium fuel producer expected an increase of about $170 million for its 49% equity share of Westinghouse Electric Company’s 2025 second-quarter and annual adjusted core earnings.
The company said the expected rise will come from Westinghouse’s participation in the construction project for two nuclear reactors at the Dukovany power plant in the Czech Republic.
Cameco and Brookfield Renewable Partners, which owns the remaining 51% of Westinghouse, are benefiting from a surge in demand for nuclear energy as the world looks to move away from fossil fuels. Westinghouse is among the world’s top suppliers of nuclear reactors.
In addition to the increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025, Cameco expects notable financial advantages for Westinghouse, as a subcontractor, over the term of the Dukovany construction project.
It also expects benefits from the necessary fuel fabrication services for both reactors for a specified period.
It said the outlook for Westinghouse’s compound annual growth rate for adjusted EBITDA remains 6% to 10% over the next five years, excluding the impact of the $170 million increase.
According to The Fly, Scotiabank, Raymond James, BMO Capital, and Cannacord, price targets for the company's Toronto-listed shares were also raised following the update.
Retail sentiment on Stocktwits was in the ‘extremely bullish’ (75/100) territory, while retail chatter was ‘extremely high.’
“Nuclear is the beating heart of tech,” one user said, highlighting the importance of energy source amid an expected rise in AI data center-driven power demand.
Cameco stock has gained 30.5% this year.
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