Starting off the new month on a positively energetic note, Cameco(NYSE: CCJ) stock is shooting higher today. While both the S&P 500 and DowJonesIndustrialAverage are in the red, investors are clicking the buy button on the uranium producer's stock after learning of some favorable attention that the stock is receiving from Wall Street.
As of 11:15 a.m. ET, shares of Cameco are up 5.5%, retreating from their earlier rise of 7.4%.
Goldman Sachs gives Cameco stock a green light
Initiating coverage on Cameco, Goldman Sachs assigned a $55 price target and buy rating on the stock. According to The Fly, Neil Mehta, an analyst at Goldman Sachs, predicated the auspicious outlook on the company's commanding market position and the belief that demand for uranium will soon rise, leading to higher prices -- all of which will benefit Cameco.
Based on Cameco's closing price of $43.32 on Friday, the $55 price target implies upside of 27%.
Cameco heads into 2024 with momentum
Cameco is coming off a strong performance in 2023. Besides growing revenue 39% on a year-over-year basis, the company reported net earnings growth over 300% and operational cash flow more than doubled compared to 2022. Plus, the company's optimistic about 2024, projecting revenue of $2.85 billion to $3 billion. Should it achieve the midpoint of this range, it will represent top-line growth of more than 13%.
Global interest in nuclear power is growing. Several weeks ago, leaders from the United States, China, France, Saudi Arabia, and 30 other countries vowed to foster the growth of the renewable energy source. This won't immediately benefit Cameco, but it's an encouraging sign for the uranium producer's long-term prospects.
For those looking to gain nuclear energy exposure, Cameco is an industry leader that's worthy of investors' consideration.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.
