Q: Thoughts on CCO today? Valuation, growth, etc?
5i Research Answer:
CCO is a large-scale uranium producer and part of the nuclear supply chain, which is gaining support under the 'clean baseload power' and infrastructure transition narrative. We think it has some tailwinds from the AI and infrastructure angle, momentum has been great, and forward earnings estimates are trending higher. It trades at a premium valuation of 74X forward earnings, but margins have been reaccelerating and its free cash flow growth has been significant. We think it looks interesting here.