Cameco is the best way to play the nuclear power resurgence with a business model that spans the value chain from uranium mines to reactors, according to the equity research firm CLSA. CLSA on Monday initiated coverage of Cameco with an outperform rating. It sees the company’s stock hitting $102 over the next 12 months, implying 32% upside from the last close of $77.74 per share. Cameco has gained more than 50% this year as demand for nuclear power grows worldwide. “Cameco is the most comprehensive play for the nuclear rejuvenation theme,” CLSA analyst Max Hopkins told clients in a note. “Its businesses could span the full nuclear fuel value chain from mine to reactor.” CCJ YTD mountain Cameco shares year to date The Canadian company, headquartered in Saskatoon, Saskatchewan, has the world’s best uranium mining assets, Hopkins said. It controls 25% of the nuclear fuel fabrication market and is exposed to 50% of the world’s reactors through its joint ownership of Westinghouse, the analyst said. “This integrated model enables Cameco to capitalise on the accelerating global transition to nuclear energy, potentially providing customers a one-stop, end-to-end access to nuclear energy,” Hopkins said. Cameco’s core business is uranium mining and processing with operations at Cigar Lake and McArthur River/Key Lake in Saskatchewan and Inkai JV in Kazakhstan. It produced more than 34 million pounds of uranium in 2024, making it a leading global supplier of uranium concentrate, according to CLSA. Cameco’s 49% stake in Westinghouse gives it exposure to the growing demand for new nuclear plants and services for the existing fleet. Westinghouse’s AP1000 reactor design is expected to play an important role in new nuclear capacity in North America and Europe. Cameco builds nuclear fuel bundles for reactors and has a 49% stake in Global Laser Enrichment, a company that uses third-generation enrichment technology. Cameco has an option to gain a majority interest of 75% in GLE. “The largest risks are a nuclear energy accident derailing the entire theme and Cameco-specific risks include operational issues and geopolitical tensions,” Hopkins said.
