CCJ - RBC upgrades Cameco to buy - higher demand leads to higher uranium prices

RBC upgraded Cameco (NYSE:CCJ) to buy Monday, citing a structural shift in the uranium market, following Russia's invasion of Ukraine. The bank believes that as the West moves away from Russia-enriched supply, utilities will consume significantly more  uranium; the bank increased it's demand forecast by 10% globally through 2035. Meanwhile, RBC reduced it's supply forecast over the same period, and now sees a long-term uranium "U308" price of $65. Cameco is best-positioned, given geographic mix and western-based conversion. Capacity additions have captured headlines of late; however, the impact of reduced Russian enrichment has gone relatively unnoticed, so it will be interesting to see how Cameco (CCJ) and the rest of the space (URA) trade on the back of Monday's upgrade.

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RBC upgrades Cameco to buy - higher demand leads to higher uranium prices