The Globe and Mail reports in its Tuesday edition that RBC Dominion Securities analyst Andrew Wong has upgraded Cameco to "outperform" from "sector perform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Wong boosted his share target by $20 to $50. Analysts on average target the shares at $38.53. Mr. Wong sees Cameco benefiting from significant changes to the global uranium market stemming from Russia's unprovoked attack on Ukraine. He says Cameco is "best-positioned to meet market needs in this transition with Western-based proven and potential production along the nuclear fuel cycle." Mr. Wong says in a note: "We think Cameco has a favourable asset mix that is best-positioned to meet the market transition. ... As Western-aligned markets (U.S., EU, and allies) move to shift away from reliance on Russian enrichment, we expect Western enrichers to move into overfeed, resulting in significantly increased uranium demand and reduced secondary supply from prior enricher underfeed. More importantly, we see a severe deficit in the Western-aligned markets, which could result in a price premium for Western production as geopolitical concerns rise and product origin becomes more important."
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