BMO Capital has reiterated an Outperform recommendation on Cameco Corp. (TSE:CCO) (NYSE:CCJ) and kept a C$170.00 price objective in place after reviewing Cameco’s fourth-quarter 2025 results and its guidance for 2026.
The analyst note includes a near-term reduction to EBITDA forecasts. BMO lowered its 2026 EBITDA estimate by 7% and trimmed the 2027 forecast by 1%, citing weaker-than-expected output from the McArthur River mine and a rise in purchases as the drivers of the adjustment. Cameco’s reported EBITDA for the last twelve months stands at $666 million, and consensus analyst estimates point to diluted EPS of $1.33 for fiscal 2026.
Despite the cuts to near-term profitability metrics, BMO signaled continued confidence in the company’s longer-term trajectory. The firm pointed to potential upside tied to Westinghouse, noting that a final agreement with the U.S. Government could be signed soon. That prospective deal is a core element of BMO’s constructive view.
Investor sentiment toward new nuclear has, in BMO’s view, been improving, and the bank described Cameco’s growth outlook as attractive. The research team indicated that these factors should support a continued re-rating of the stock.
Market context also featured in recent trading: nuclear energy names saw gains in premarket activity after U.S. President Donald Trump voiced support for nuclear power during remarks at the World Economic Forum in Davos, saying, "We’re very much into world of nuclear energy." Those comments have drawn attention from investors who follow policy developments that could affect the industry, though noted market moves were not the primary focus of the analysis.
Background metrics and market signals
Cameco is a major uranium producer with a market valuation approaching $48 billion. Over the past year the company’s stock has appreciated roughly 140%, according to InvestingPro data. BMO’s update balances a modest downgrade to short-term EBITDA with a view that improving nuclear sentiment and potential strategic developments related to Westinghouse present upside.
What analysts and investors will watch next
Key items to monitor include operational performance at McArthur River, the scale and timing of external purchases, and any confirmation of a final Westinghouse arrangement with the U.S. Government. Each of those elements bears directly on near-term earnings and on the strategic case BMO outlines for a higher valuation over time.