Analysts rate Cameco Corp. (CCJ:NYE) with a Strong Buy rating and a $45 target

STA Research
by: STA Research
Cameco Corp.

Analysts rate Cameco Corp. (CCJ:NYE) with a consensus Strong Buy rating and an average CCJ stock price target of $45.44 per share over the next 12 months.

Scotiabank Capital recently raised the Cameco stock price target from $43 to $44.

Based on the Cameco Corp. stock forecasts from 6 analysts, the average analyst Cameco stock price target is USD 45.44 over the next 12 months. Cameco Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of CCJ stock forecast is Slightly Bullish, which is based on 10 positive signals and 6 negative signals. At the last closing, Cameco stock price was USD 27.01Cameco stock price has changed by +2.52% over the past week, +4.48% over the past month and +57.13% over the last year.

About Cameco Corp. (CCJ:NYE):

Cameco Corporation produces and sells uranium. It operates through two segments, Uranium and Fuel Services. The Uranium segment is involved in the exploration for, mining, and milling, as well as purchase and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. This segment also produces fuel bundles or reactor components for CANDU reactors. The company sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.

 

What we like:

High market capitalization

CCJ stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The annual returns for CCJ stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

CCJ stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value

CCJ stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth

Cameco stock has shown top quartile dividend growth in the previous 5 years compared to its sector

 

What we don’t like:

Below median dividend returns

The average income yield of Cameco stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

CCJ stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

CCJ stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

CCJ stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.