With uranium prices on the run, keep an eye on Cameco Corp. (CCJ).
For one, Congress is considering legislation that could ban Russian imports, which currently accounts for about 17% of the uranium used by U.S. power plants, says Real Clear Energy.
Two, “Bank of America noted a Reuters report that said Russia had been considering banning US uranium exports,” adding, “With minimal direct impacts, we see upward price pressure to date as driven by risk mitigation. We expect this to continue and then accelerate should direct impacts emerge.”
Three, RBC analyst Andrew Wong just upgraded the stock to a buy rating from hold, with a price target of $40 from $24. “We believe the Russia/Ukraine war and subsequent shift in Western markets away from exposure to Russia have fundamentally changed the uranium market outlook and long-term market structure,” he said, as quoted by Barron’s. “We see Cameco as best-positioned to meet market needs in this transition with Western-based proven and potential production along the nuclear fuel cycle.”
Technically, it looks like CCJ just caught support after slipping from $32 to $21.78. Also, the stock is wildly oversold on RSI, MACD, and Williams’ %R.
