On July 31, Cameco rose 5.85% in pre-market trading, trading at $93.91/share, with turnover of $798,000.
On the news front, the company released its latest quarterly earnings before the market open, with consensus estimates calling for EPS of $0.26. Meanwhile, UBS upgraded Cameco from Neutral to Buy on July 27, setting a price target of C$166. The company has consistently delivered strong beats in recent quarters, with Q1 adjusted EPS of C$0.47 surpassing market expectations by 88%. In the prior quarter, Cameco posted revenue of C$845 million, up 7.10% year-over-year, with a gross margin of 43.61% and adjusted EPS of C$0.30, representing 87.50% year-over-year growth.
Fundamentals continue to strengthen as Cameco recently completed an increase of its Cigar Lake mine interest to 57.42% and signed a roughly $1.90 billion uranium supply agreement with India covering approximately 22 million pounds of uranium ore concentrate through 2035. Institutional sentiment remains broadly bullish, with Stifel Canada maintaining a Buy rating and a C$180 target, while RBC raised its target to C$160 with an Outperform rating.
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