Over the past year, the stock price of Canadian uranium producer Cameco Corp (TSX:CCO) has surged by 94%. However, analysts suggest that it may have risen too high too quickly, leading them to advise investors to consider other Canadian uranium stocks.
According to analysts’ forecasts, the spot price of uranium is expected to peak at $120/pound in 2026, with a long-term price of $75.
In the Canadian stock market, there are several uranium companies whose stock prices still have potential for growth, such as the following Canadian uranium stock:
When it comes to the next generation of uranium stocks, analysts have listed NexGen Energy Ltd (TSX:NXE) as the “top recommended stock.”
In 2023, the company obtained provincial environmental regulatory approval, and investors helped the uranium miner raise $110 million in debt financing. Therefore, analysts believe that the stock will strengthen in 2024, achieving multiple milestones, with federal approval expected to be secured in the first half of this year.
Following this, NexGen will initiate financing for the company’s first project, the Rook I uranium project.
One fact to understand is that Cameco remains the world’s largest publicly traded uranium producer, with ample cash on hand to potentially monopolize the market and a strong motive to continue controlling global uranium supply, indicating that the company is unlikely to let other competitors “steal its food.” This analysis is from Cameco’s perspective.
From NexGen’s perspective, with sufficient financing and smooth progress in approvals, the company is very attractive for acquisition.
However, interest is not limited to just Cameco, as other types of companies also have the desire to include NexGen in their portfolios, such as oil and gas companies looking to transition to the uranium sector or renewable energy companies expanding their business.
In the uranium investment theme, Cameco remains a good investment target, with the main drawback being its high cost. Therefore, NexGen has become a favorite for a large number of analysts.
The company has ample funds, definite growth opportunities, and is much cheaper than Cameco. The stock price has risen by 66% in the past year to a 52-week high of $10.50, but analysts expect it to continue rising by at least 5% over the next year. If news of an acquisition breaks, the potential for stock price growth will be further expanded.
