1. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 82
Stock Upside: 2.92%
Cameco Corporation (NYSE:CCJ) is one of the best TSX stocks to buy according to hedge funds. On April 20, William Blair analyst Jed Dorsheimer initiated coverage on Cameco Corporation (NYSE:CCJ) with an Outperform rating.
According to Dorsheimer, Cameco is not just a uranium miner but also refines and converts uranium. The analyst also noted that the company owns 49% of Westinghouse Electric Company, the world’s leading nuclear reactor technology firm. This structure, noted Dorsheimer, gives Cameco a stake in every stage of the nuclear fuel cycle. He added that the Westinghouse stake is particularly strategic because each new reactor built using Westinghouse’s AP1000 technology creates demand for Cameco’s fuel products. This essentially makes the two businesses mutually reinforcing.
The analyst also highlighted what he called a favorable pricing power environment tied to an undercontracted existing fleet. This means many utilities have not yet locked in long-term uranium supply contracts, which positions Cameco to negotiate from a position of strength as demand for nuclear fuel accelerates.
An example of this pricing power is already playing out in the case where Cameco signed a uranium supply agreement with India’s Department of Atomic Energy. In the deal, Cameco will supply about 22 million pounds of uranium concentrate between 2027 and 2035, and the company will earn about C$2.6 billion. Dorsheimer noted that this is a long-term contract that underpins revenue visibility well into the next decade.
Cameco Corporation (NYSE:CCJ) explores, mines, mills, and markets uranium. Its key operations include high-grade uranium mines such as Cigar Lake and McArthur River in Saskatchewan, along with fuel services that convert and refine uranium for utility customers worldwide.
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