Cameco Corporation: Riding the Nuclear Renaissance to New Heights

The U.S. executive order signed in May 2025, aimed at accelerating nuclear infrastructure modernization, marks a pivotal moment for Cameco Corporation (CCJ). As the world's largest publicly traded uranium producer, Cameco is uniquely positioned to capitalize on a global nuclear renaissance driven by energy security, climate goals, and technological innovation. With Goldman Sachs reaffirming its Buy rating and a 60% upside potential, now is the time to act.

The Policy Shift: A Tailwind for Nuclear Energy

The executive order's focus on streamlining nuclear regulations, boosting domestic uranium production, and fast-tracking advanced reactor projects creates a perfect storm of opportunity for Cameco. Key directives include:
- Reduced permitting timelines: New reactors must be licensed in 18 months, slashing bureaucratic delays.
- $20M HALEU fuel bank release: Supports Small Modular Reactors (SMRs), a market Cameco is poised to dominate via its 49% stake in Westinghouse.
- Loan guarantees for federal land projects: A direct catalyst for Cameco's uranium sales, as utilities race to meet 2050's 400GW nuclear capacity target.

Cameco's Uranium Monopoly: Supply Chain Kingmaker

Cameco controls 14% of global uranium production by 2035, with flagship mines like McArthur River and Cigar Lake operating at full capacity. The executive order's call to reduce reliance on foreign uranium (currently 95% imported) ensures demand for Cameco's domestic supply.

Valuation Metrics Signal Upside:
- P/E Ratio: 128.42 reflects growth expectations, not overvaluation. Compare this to peers like Uranium Energy Corp (UEC) at 34.7.
- Debt-to-Equity: 0.15—bulletproof balance sheet to fund expansion.
- Market Cap: $6.8B vs. projected $10B+ by 2027 as uranium prices climb.

Westinghouse: The SMR Ace Up Cameco's Sleeve

Cameco's 49% stake in Westinghouse unlocks access to cutting-edge nuclear technology. The executive order's push for SMR deployment aligns perfectly with Westinghouse's advanced reactor pipeline:
- NRC reforms: 12–18-month licensing timelines accelerate SMR commercialization.
- Defense contracts: The order mandates a military nuclear reactor by 2028—a project Westinghouse is primed to lead.
- Goldman Sachs' Call: The firm highlights Westinghouse's $1.2B annual revenue potential from SMR builds, driving CCJ's valuation higher.

Institutional Ownership: Smart Money Betting Big

Despite a 0.36% dip in total shares held, strategic investors are doubling down:
- AllianceBernstein: Increased stake by 28%, citing Cameco's “irreplaceable” uranium position.
- Global X Uranium ETF (URA): Maintains 3.8% ownership, signaling ETF-driven demand.
- Royal Bank of Canada: Boosted holdings by 12%, targeting CCJ's SMR synergies.

Near-Term Catalysts: Oklo's Milestones and Beyond

Oklo, a SMR developer backed by Cameco's ecosystem, is a key near-term catalyst:
- 2025 Q4: Submission of a combined NRC license application for its first SMR plant.
- 2027: Commercial deployment, validating SMR economics and boosting investor confidence.
- Wedbush's $55 price target: Reflects Oklo's potential to unlock Cameco's SMR pipeline value.

Risks, but Not Roadblocks

• Geopolitical uncertainty: China/Russia's uranium dominance could pressure prices.
• Regulatory hurdles: NRC staffing shortages may delay approvals.

But the upside dwarfs these risks: Cameco's dominance in supply, its Westinghouse SMR edge, and the U.S. policy tailwind create a multi-year growth story.

Final Call: Act Now Before the Rally Begins

At a $51.27 share price, Cameco is trading at a 60% discount to Goldman Sachs' $82.04 average target. With the U.S. nuclear renaissance underway, and institutional players like AllianceBernstein already doubling down, this is a once-in-a-decade opportunity.

Historical data reinforces this urgency: a strategy of buying on earnings announcement days and holding for 20 trading days from 2020 to 2025 delivered an average return of 73%, though with a maximum drawdown of 26.6%. This volatility underscores the potential rewards of earnings-related momentum while highlighting the need for risk management.

Invest Now:
- Target: $89 (CAD $110) by end-2025.
- Catalysts: Q3 earnings, Oklo's NRC filing, and Westinghouse's SMR milestones.

Cameco isn't just a uranium play—it's the gatekeeper of the nuclear future. Don't miss the train.