NEW YORK (TheStreet) -- Cameco Corporation (CCJ) hit a one-year high of $24.50 on Wednesday on the heels of reports that Shinzo Abe's government in Japan had drafted a new Basic Energy Plan in which nuclear power plays a crucial role.
The Japanese government's plan should provide a boost to America's largest uranium producer because the first draft states the government would restart the nuclear reactors deemed safe by the Nuclear Regulatory Authority. Japan shut down all of its nuclear reactors in the wake of the disaster at Fukushima almost three years ago.
In its latest quarterly earnings release, Cameco stated the slower-than-expected rate of Japanese reactor restarts was a primary factor in the decay in the uranium market in 2013. Consequently, Cameco canceled its previous supply target of 36 million pounds in 2018.
TheStreet Ratings team rates CAMECO CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAMECO CORP (CCJ) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins."