BofA raises uranium price forecast, sees 50% gain by 2027
Bank of America kept a bullish uranium view, forecasting U3O8 at an average $130 per pound in 2027, about 52% above current spot, citing tight supply and nuclear energy support. U.S. utility uranium inventories rose 3% YoY to 118 million pounds at end-2025. BofA cut Cameco’s price target 5% to $133 and kept Buy, projecting 2026 adj. EPS of C$1.69.
How this was made
The 30-second read
Why it matters
The key tradable element is the CCJ-specific sell-side update: PT lowered slightly, but the uranium price forecast and Westinghouse interest are used to justify continued Buy and revised 2026 EPS.
Market read
Traders can use the PT and EPS model update as a catalyst for CCJ positioning, while the broader uranium forecast may influence the whole uranium complex.
What to watch
The article highlights rising US inventories and falling forward contract coverage, which could cap spot strength even if long-term policy support remains.
Background
BofA’s uranium thesis cites tight supply, nuclear policy support, and a scheduled Russian uranium import ban starting 2028.
Ticker impact
BofA cut Cameco’s price objective 5% to $133 after 2Q26 results, but kept Buy, citing higher U3O8 prices and Westinghouse stake.
Moderate upside bias for CCJ if traders buy into BofA’s higher U3O8 forecast, despite the slightly lower PT.
The article is a sell-side forecast change with explicit PT and EPS updates, but it is not a company fundamental disclosure like earnings or a contract award.
Market effects
Reinforces bullish sentiment for uranium producers and fuel-cycle exposure via higher U3O8 price assumptions.
Limited direct regional impact; mostly US-listed uranium equities sentiment.
Supports global nuclear-fuel investment narrative tied to supply tightness and import restrictions timing.
Counterpoint
U3O8 price forecasts may be overly optimistic versus inventory trends and contract coverage declines, limiting realized pricing power for producers.
Key entities
- companyCameco
BofA maintains Buy, lowers PT to $133, and updates its model after 2Q26 results, linking value to higher U3O8 prices.
- financial_institutionBank of America
Maintains bullish uranium price forecast to 2027 and updates Cameco valuation assumptions.
- government_agencyU.S. Energy Information Administration
Reported US utility uranium inventories rose 3% YoY to 118 million pounds at year-end 2025.
- companyWestinghouse Electric Company
Cameco’s 49% interest is cited as a key reason BofA expects benefit from higher U3O8 prices.
