Investing.com -- Bank of America maintains its bullish outlook on uranium prices, projecting U3O8 to reach an average of $130 per pound in 2027, representing a 52% increase from current spot prices. The forecast is based on tight supply conditions and growing support for nuclear energy.

Recent data from the U.S. Energy Information Administration showed U.S. utility uranium inventories increased 3% year-over-year to 118 million pounds at year-end 2025. This marks a continuation of rising inventories that began in 2022, following Russia's invasion of Ukraine and concerns about Russian uranium supply to the U.S. A complete ban on Russian uranium imports is scheduled to take effect at the start of 2028.

The extent to which U.S. nuclear utilities' 10-year forward uranium fuel needs are covered by supply contracts declined to 48% in 2025, down from 56% the previous year and 57% in 2023.

In May 2025, four Executive Orders were signed targeting a quadrupling of U.S. nuclear capacity to 400GW by 2050. This was followed by an $80 billion commitment to build 10 new Westinghouse AP1000 reactors and $2.7 billion in Department of Energy awards to rebuild domestic enrichment infrastructure.

BofA lowered its price objective for Cameco (NYSE: CCJ) by 5% to $133 (C$190) per share following second-quarter 2026 results. The firm maintained its Buy rating on the stock, citing expected higher U3O8 prices and Cameco's 49% interest in Westinghouse Electric Company.

The bank updated its Cameco model after the company held all volume guidance for 2026 while increasing 2026 unit cost guidance by 3-7%. BofA now projects 2026 adjusted earnings per share of C$1.69 for Cameco.