Cameco's Favorable Tailwinds Likely to Continue, RBC Says

MT Newswires Live08-04

Cameco (CCJ) remains well positioned to benefit from strong nuclear energy and uranium market fundamentals, RBC Capital Markets said in a note Friday.

"We continue to see favorable tailwinds in nuclear and

uranium, with Cameco best-positioned to benefit with tier 1 uranium assets and ownership in Westinghouse," the note said.

The report said good momentum in uranium price strength is expected to continue through the next 6-12 months as uranium contracting activity picks up seasonally.

The note pointed to growth driven by re-investment into the existing nuclear fleet and AP1000 new builds.

"We also see Westinghouse as a unique asset with no direct publicly-traded peer which we think justifies a premium valuation," the report said. RBC kept its outperform rating.

Price: 89.43, Change: +3.05, Percent Change: +3.53

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