RBC Capital raised its Cameco price target to C$175, citing nuclear demand and higher contract pricing. The Cigar Lake stake deal strengthens exposure to rising uranium prices.
RBC Capital raised its price target on Cameco (CCJ) to C$175 from C$160 on June 29, keeping an Outperform rating. The bank sees the uranium producer benefiting from rising nuclear demand, stronger contract pricing, and supportive policy in the US and Canada.
The upgrade comes a month after Cameco agreed to buy TEPCO Resources' 5% stake in the Cigar Lake joint venture from Orano Canada for about C$115.75 million. The deal, expected to close in the third quarter of 2026, lifts Cameco's ownership to 57.418%. CEO Tim Gitzel said the transaction expands the company's position in a tier-one uranium asset that supports growing global nuclear generation.
Cigar Lake's 2026 production outlook remains at 17.5 million to 18 million pounds of uranium concentrate, Cameco said. The acquisition is subject to regulatory approvals.
RBC noted that Cameco benefits from improving uranium pricing and strong buying interest from sovereign buyers and utilities. The bank also pointed to higher-than-reported contract pricing and supportive US and Canadian nuclear policies.
The price target increase follows a broader trend of analyst optimism around uranium miners. NexGen's Financing Push Sets a Benchmark for Uranium Miners and the DOE's $17.5B Nuclear Loan: The Conditional Bet on Westinghouse both reflect growing institutional and government backing for nuclear power.
Cameco's Alpha Score sits at 53/100, a Mixed label, reflecting balanced risk-reward in the current market. The stock page is here.
The Cigar Lake stake increase gives Cameco more direct exposure to rising uranium prices without adding new mine development risk. The deal is small relative to the company's market cap but signals management's confidence in long-term nuclear demand.
RBC's target implies roughly 20% upside from pre-announcement levels. The key variable remains uranium spot prices, which have been volatile but trending higher since late 2023 on supply concerns and reactor restarts in Japan and the US.
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