The Globe and Mail reports in its Friday, Feb. 11, edition that RBC analyst Andrew Wong sees Cameco benefiting "from positive trends in uranium." The Globe's David Leeder writes that on Wednesday Cameco announced better-than-anticipated fourth quarter 2021 financial results and a 50-per-cent increase to its annual dividend to 12 cents a share. Mr. Wong rates Cameco "sector perform." He gave his share target a $1 boost to $30. Analysts on average target the shares at $36.37. Mr. Wong says in a note: "We think recent high contract activity, for both Cameco and the market, likely signals that a renewed contract cycle is gaining momentum. Overall, we believe stronger contracting activity and a gradually tightening uranium S&D should support continued improvement in uranium prices over time. We think utilities are starting to focus more on the projected long-term market deficit in the late-2020s/early-2030s. Global renewed interest in and government support for nuclear has likely given utilities more confidence to plan long term. Contract coverage for utilities remains relatively high for the next several years, but contract discussions are turning to longer durations that stretch into the next decade."
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