Cameco’s Stocks Surge, Boosted by Positive News

Cameco’s Stocks Surge, Boosted by Positive News

Start the new month on a positive energetic note, Caméco (NYSE:CCJ) the stock is up today. While both S&P500 And Dow Jones Industrial Average are in the red, investors are clicking the buy button on the uranium producer’s stock after learning of the favorable attention the stock is receiving from Wall Street.

As of 11:15 a.m. ET, Cameco shares were up 5.5%, down from their earlier rise of 7.4%.

Goldman Sachs gives green light to Cameco shares

Coverage begins on Cameco, Goldman Sachs was assigned a price target of $55 and a buy rating on the stock. According to The Fly, Goldman Sachs analyst Neil Mehta based this favorable outlook on the company’s dominant position in the market and the belief that demand for uranium will soon increase, leading to higher prices, which will benefit at Cameco.

Based on Cameco’s closing price of $43.32 on Friday, the price of $55 price target implies an increase of 27%.

Cameco enters 2024 with momentum

Cameco is coming off a strong performance in 2023. In addition to 39% year-over-year revenue growth, the company reported net income growth of over 300% and operating cash flow more than doubled compared to 2022. Additionally, the company’s optimism regarding 2024, projecting revenues of $2.85 billion to $3 billion. If it hits the midpoint of that range, that would represent revenue growth of more than 13%.

Global interest in nuclear energy is increasing. A few weeks ago, the leaders of the United States, China, France, Saudi Arabia and 30 other countries pledged to foster the growth of renewable energy sources. This won’t immediately benefit Cameco, but it’s an encouraging sign for the uranium producer’s long-term prospects.

For those looking to win nuclear energy exhibit, Cameco is an industry leader that deserves investor consideration.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool holds positions with and recommends Goldman Sachs Group. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

Why Cameco Stock is Up Today was originally published by The Motley Fool

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