{"id":385450,"date":"2010-03-03T10:30:00","date_gmt":"2010-03-03T15:30:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:402828"},"modified":"2010-03-03T10:30:00","modified_gmt":"2010-03-03T15:30:00","slug":"cameco-downgraded-on-weak-uranium-price","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/385450","title":{"rendered":"Cameco downgraded on weak uranium price"},"content":{"rendered":"<p>Even <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=CCO&amp;id=97138\" >Cameco Corp.<\/a>, the biggest player in the uranium industry, cannot escape recent weaknesses in the mineral&#39;s spot price.<\/p>\n<p>Fraser Phillips, analyst with RBC Capital Markets, has downgraded Cameco to Sector Perform with above average risk from Outperform while lowering his price target to $32 from $35, citing declining uranium prices.<\/p>\n<p>Since the beginning of the year, uranium spot prices have dropped $4 a pound, approacing the $40\/lb low-water mark of the past four years.&nbsp;<\/p>\n<p>&quot;Notwithstanding the benefits of Cameco&#39;s uranium contract portfolio, we forecast a drop in EPS from $1.49 in 2009 to $1.16 in 2010, and only a modest increase to $1.20 in 2011 based on our revised uranium price forecasts,&quot; he said in a new note to clients.<\/p>\n<p>For 2010, Mr. Phillips has dropped his estimated price to $44.50\/lb from $50\/lb. And for 2011, he now estimates the going rate of uranium to be $55\/lb, down from $60\/lb.<\/p>\n<p>Continuing work at Cameco&#39;s Cigar Lake mine in Saskatchewan and a new report expected in the first quarter of 2010 could serve as upside catalysts for the share price, but Mr. Phillips does not see any major acquisitions in Cameco&#39;s pipeline.<\/p>\n<p>He is also still positive on the company&#39;s long term upside, citing Cameco&#39;s strong balance sheet and developing free cash flow.<\/p>\n<p><a href=\"mailto:erlam@nationalpost.com\">Eric Lam<\/a>&nbsp; <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=402828\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Even Cameco Corp., the biggest player in the uranium industry, cannot escape recent weaknesses in the mineral&#39;s spot price. Fraser Phillips, analyst with RBC Capital Markets, has downgraded Cameco to Sector Perform with above average risk from Outperform while lowering his price target to $32 from $35, citing declining uranium prices. Since the beginning of [&hellip;]<\/p>\n","protected":false},"author":4586,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-385450","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/385450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4586"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=385450"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/385450\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=385450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=385450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=385450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}