Cameco Stock Rallies After Jefferies Initiates 'Buy' Rating, Sets $138 Target

Shares of uranium producer Cameco (NYSE: CCJ) rose sharply in morning trading after Jefferies initiated coverage on the stock with a 'Buy' rating and a US$138 price target. The investment bank's analysis highlighted the company as a primary beneficiary of the ongoing expansion of nuclear power in Western nations.

In a note to clients, Jefferies analyst Laurence Alexander argued that Cameco's asset base is materially undervalued by the market. The firm's price target implies significant upside from the stock's prior close of $96.38 and was a key driver of positive sentiment during the session.

Valuation Breakdown

Jefferies employed a sum-of-the-parts framework to arrive at its valuation, breaking down the company's worth by business segment. The analysis attributed the most value to Cameco's core operations and its strategic partnership.

• Upstream uranium assets: $63 per share
• Westinghouse partnership: $51 per share
• Conversion assets: $11 per share
• Undeveloped resources & corporate: $7 per share

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The significant valuation placed on the Westinghouse partnership is particularly noteworthy, as the nuclear technology firm recently filed confidentially for an initial public offering (IPO) with the U.S. Securities and Exchange Commission.

Market Reaction and Context

Following the report, Cameco shares climbed 4.0% to a session high of $100.54. The rally was supported by a constructive broader market, with the S&P 500, Dow Jones, and Nasdaq all posting gains.

The bullish initiation from a high-profile Wall Street firm reinforced the positive structural demand thesis for the entire uranium sector. The note adds to an already strong consensus among analysts, who largely rate the stock as a 'Buy,' and aligns with the company's intact 2026 production guidance and its portfolio of long-term supply agreements.