Shares of Cameco Corp (NYSE:CCJ) (TSX:CCO) advanced 3.4% on Thursday following Jefferies’ launch of coverage with a buy rating and a price target of C$190. BWX Technologies Inc (NYSE:BWXT) also moved higher, up 1.2%, after receiving a buy rating from the same analyst.
Laurence Alexander of Jefferies initiated coverage on both uranium-related names, pointing to rising demand for nuclear power as a central factor shaping the sector’s outlook. In framing Cameco’s valuation, Alexander assigned a price target of $138 per share, equivalent to C$190, and described the company as one of the world’s largest suppliers of uranium fuel.
Alexander emphasized operational discipline and a robust balance sheet as reasons he views Cameco as a key beneficiary of expanded nuclear capacity in Western markets. He noted that "More than 30 countries have pledged to triple capacity by 2050, hyperscalers are contracting baseload for AI as electricity demand accelerates, and Russian exclusion has lifted conversion and enrichment to incentive levels."
Jefferies’ valuation for Cameco was produced on a sum-of-the-parts basis. The analyst allocated $63 per share to upstream assets, $11 per share to conversion assets, $7 per share to undeveloped resources and corporate, and $51 per share to the long-term partnership involving Westinghouse and the U.S. government.
BWX Technologies was also initiated with a buy rating and a $181 price target. Jefferies highlighted BWXT’s position as the sole-source supplier of naval nuclear reactor components and fuel for the U.S. Navy. The analyst argued that the company benefits from operating leverage tied to maintenance and expansion of the commercial nuclear fleet while occupying a unique role supplying reactors and fuels to the U.S. Navy.
In addition to its strategic positioning, Jefferies expects BWX to produce 6% to 7% sales growth and 13% to 17% earnings-per-share growth through 2030, according to the initiation note.
Market reaction and positioning
The analyst initiation coincided with modest share gains for both names. Jefferies’ commentary frames Cameco as a major play on Western nuclear build-out and positions BWXT as a specialized supplier insulated from direct swings in uranium or enrichment prices, given its role in naval contracts and reactor components.
What this means for sectors
- Uranium and nuclear fuel supply markets are central to the thesis articulated by Jefferies.
- Commercial nuclear operations, maintenance and fleet expansion inform expected revenue drivers for suppliers.
- Defense-related nuclear supply chains, specifically naval reactors and fuel, are highlighted in BWXT’s outlook.