NEW YORK, November 8 (newratings.com) - Analysts at UBS reiterate their "buy" rating on Cameco Corporation (CCJ.NYS), while raising their estimates for the company. The target price has been raised from C$74 to C$75.
In a research note published this morning, the analysts mention that the uranium price estimates for 2005, 2006 and 2007 have been raised by 6.75%, 41% and 33%, respectively, due to a decline in utility inventories, a hike in reactor operating rates and improved supply-demand trends. The impact of the increase in uranium prices on Cameco’s near-term earnings would be limited due to the company’s uranium contracts, the analysts say. The EPS estimates for 2006 and 2007 have been raised from $2.19 to $2.36 and from $3.29 to $3.86, respectively.