UPDATE: JP Morgan Downgrades Cameco to Neutral on Uranium Pricing Outlook

JP Morgan reduced its rating on Cameco

from Overweight to Neutral. JP Morgan noted, "We are downgrading CCO to Neutral from Overweight and lowering our estimates and price target (to C$22 from C$24) to reflect our reduced uranium price forecasts and belief that uranium prices will likely remain below US$50/lb for roughly the next year. … While we don't see much further downside to either the uranium spot price or CCO's stock price, we are going to Neutral on the stock as we think it will largely trade sideways until uranium prices start to materially increase, which we don't expect to happen until 2014." Cameco closed at $17.95 on Wednesday.