Section1: Company Overview

Cameco Corporation (TSX: CCO) is one of the world's largest uranium producers. When operating at normal production, the flagship McArthur River mine in Saskatchewan accounts for roughly 50% of output in normal market conditions. Amid years of uranium price weakness, the company has reduced production, instead purchasing from the spot market to meet contracted deliveries. In the long term, Cameco has the ability increase annual uranium production by restarting shut mines and investing in new ones. In addition to its large uranium mining business, Cameco operates uranium conversion and fabrication facilities.

This Report covers the Key Recommendation Rationale, Valuation, Target Price, and Recommendation on the stock.  

1.1 Key Recommendation Rationale

Section 2:  Stock Recommendation Summary

2.1 Valuation Methodology

Valuation Methodology (Illustrative): EV to Sales based Relative Valuation approach: 

2.2 Price Performance and Stock Recommendation

It has witnessed an upside of ~10.54% and ~29.94% over the 1 week and 1 month respectively. The stock is trading above the average of 52-week high price of CAD 88.18 and 52-week low price of CAD 48.71, providing an opportunity to exit, as the stock might make some correction. 

2.3 One-Year Technical Price Chart 

One-Year Technical Price Chart (as of May 07, 2025). Source: REFINITIV, Analysis: Kalkine Group

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 07, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.