Cameco Corporation (NYSE: CCJ)

Cameco Corporation (NYSE: CCJ) is engaged in providing uranium fuel to generate clean, reliable baseload electricity around the globe.

Recommendation Rationale – Sell at USD 45.32 

• CCJ is exposed to the risks related to global macro-economic uncertainty and volatility, and uncertain trade policy decisions. It posted Q4 net earnings of $135 Mn and adjusted net earnings of $157 Mn. Its quarterly results witnessed the impact of normal variations in contract deliveries as well as the timing of Westinghouse’s customer requirements, which were significantly weighted towards the Q4 FY 2024.
• The company is exposed to risks related to unexpected changes in uranium supply, demand, long-term contracting as well as prices.
• Also, the fluctuations in consumer demand for nuclear power and uranium because of changes in societal views and objectives related to nuclear power, electrification and decarbonization can affect its business.

CCJ’s Daily Price Chart

Fundamental Valuation

Considering the increasing volatility over global equity market, inflationary pressures, geopolitical tensions, etc. the company’s stock might trade at slight discount. For the valuation, peers such as Centrus Energy Corp, Ur-Energy Inc, etc. were considered.  

Given its current trading levels, and risks associated, it is prudent to book profit at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the closing price of USD 45.32 per share, up by 3.02% as on 28^th April 2025.  

Cameco Corporation (NYSE: CCJ) forms part of Kalkine’s Global Big Money Portfolio 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance. 

Note 2: 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: 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. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.  

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest. 

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.