Jefferies turned bullish on the nuclear energy sector on September 3 and initiated coverage of Cameco Corporation (NYSE:CCJ) and BWX Technologies, Inc. (NYSE:BWXT) with a ‘Buy’ rating and price targets of $138 and $181, respectively. This implies an upside of over 31% for CCJ and 13% for BWXT, reflecting the investment bank’s growing confidence in the long-term outlook for nuclear power as the government, utilities, and businesses seek reliable sources of low-carbon electricity.
Nuclear energy has garnered significant global attention amid the ongoing AI boom, and more than 30 countries have pledged to triple capacity by 2050. The United States went a step further, and President Trump signed an executive order to quadruple the country’s nuclear energy capacity by 2050. The White House wants to reinvigorate the sector by cutting down on regulations and fast-tracking new licenses for reactors and power plants.
Photo by Frédéric Paulussen on Unsplash
From Uranium to Reactors:
Cameco is particularly well-positioned to benefit from the nuclear revolution, with Jefferies analyst Laurence Alexander touting it as “a prime beneficiary of the West’s nuclear buildout”. The company mined 15% of the world’s uranium in 2025, making it the second-largest uranium miner in the world after Kazakhstan’s Kazatomprom. Cameco has long-term contracts to deliver about 230 million pounds of uranium through 2030, raising its investment profile in the long run.
Aside from that, Cameco also owns a stake in Westinghouse Electric. This reduces its exposure to volatile uranium prices and makes it a more diversified play on the nuclear energy infrastructure market. According to Jefferies, this positions it well to “secure higher contract prices covering deliveries through 2040”.
Similarly, BWX Technologies enjoys the “unique position” of being the sole provider of naval nuclear reactors for US submarines and aircraft carriers. The company is also a pioneer in the emerging microreactor sector, and its BWXT Advanced Nuclear Reactor (BANR) technology was recently selected by the U.S. Army for its Janus program. It is a $2.2 billion initiative to build and operate tiny nuclear reactors on military bases, with the hope that they will one day power remote installations, such as those in Alaska or on islands.
Given the “strong” nuclear cycle, Jefferies expects BWXT to deliver annual sales growth of 6%-7% and earnings growth of 13%-17% through 2030 and most likely also through 2040, barring any policy shocks.
The Nuclear Boom Comes with Risks:
Despite the favorable industry backdrop, both companies also face risks that could limit their returns.
The most significant risk for Cameco is its sensitivity to uranium prices. While its long-term outlook remains constructive, uranium is a cyclical commodity and prices can fall if reactor buildout slows, utilities delay purchases, or new supply comes online faster than expected. Building a nuclear power plant requires significant time and investment, and the pace at which these projects translate into revenue growth remains uncertain.
On the other hand, while BWXT is less exposed to commodity-price volatility, its investment case depends on continued growth across its established business and commercialization of newer nuclear technologies.
Then there is also an execution risk. An example is the recent Janus award, where the Army wants a functional reactor as early as September 2028. This gives BWXT an aggressive timeline to advance a technology that requires complex nuclear engineering, manufacturing, fuel, and safety requirements. Any delays could postpone revenue and undermine the microreactor’s broader commercial prospects.
Conclusion:
Jefferies’ bullish stance on Cameco Corp and BWX Technologies highlights the firm’s confidence in a structural nuclear energy renaissance, supported by the rising power demand and a favorable US policy. While uranium price volatility presents a risk to Cameco and execution remains key for BWXT, both companies are strategically positioned to capitalize on the sustained nuclear investment.
Market Sentiment:
BWX Technologies, Inc. was held by 65 hedge funds at the end of Q2 2026 in the Insider Monkey database, with a total investment value of $1.5 billion. This compares to 75 hedge fund investors boasting a total stake value of around $1.2 billion for Cameco Corporation.
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This article is originally published at Insider Monkey.
