Cameco Stock Is Down 36% From Its All-Time High. Here's What Needs to Happen to Make It a Buy

Bank of America analysts favor copper and uranium producers due to supply constraints and demand growth, while higher US interest rates may pressure gold. They downgraded Kinross Gold and Alamos Gold, raised Freeport-McMoRan's price target to $87, and maintained a 'Buy' rating on Cameco with a $133 target. Copper price forecasts were increased, with 2026 average seen at $13,278 a ton and 2027 at $15,250.

Uranium prices hit new highs, with long-term contracts at $96.50/lb and spot at $89.63/lb, according to Cameco. Despite this, uranium equities like Cameco (CCJ) and the VanEck Uranium ETF (NLR) have declined. Policy support for nuclear energy grew, with a U.S.-Korea framework for reactor deployment. Lithium prices also rose, with Chinese battery-grade lithium carbonate averaging 122,350 yuan/tonne.

Amazon and Alphabet signed 20-year nuclear power deals with Constellation Energy. Cameco, a uranium supplier, is highlighted as a potential beneficiary of the growing nuclear energy demand, with its stock trading below analysts' target price of $125.75.

Alphabet announced a deal to buy nuclear power from Constellation Energy, adding 890 MW of reactor capacity. Constellation's shares rose 12%. Cameco Corp (CCJ), a uranium company, is seen as a beneficiary. CCJ's stock is overvalued by 38.7% according to GuruFocus, trading at $93.02 vs. a GF Value of $67.07. CCJ has a GF Score of 83/100, strong growth, but weak valuation.

Cameco (TSX: CCO, NYSE: CCJ) acknowledged a US-Republic of Korea framework for $120B investment in US nuclear reactors, including Westinghouse and Korean technologies. The plan, part of a broader partnership, aims to build up to eight reactors, with Cameco supporting US nuclear capacity expansion. The framework is non-binding and subject to negotiations and approvals.

The U.S. and Korea agreed on a framework committing up to $120B in Korean investment for constructing eight nuclear reactors in the U.S., including six Westinghouse AP1000 reactors and two Korean APR1400 reactors. The deal includes a 5-10% equity investment in Westinghouse by Korea. Brookfield Asset Management and Cameco are partners in the project, which aims to expand U.S. nuclear capacity to meet growing energy demand.