Reuters reported that shares in Cameco rose as much as 7% after analysts boosted the uranium producer's rating and share price target on a strong Q4 outlook and soaring uranium prices.

The company reported a drop in Q3 profit on Monday but raised its 2010 uranium production forecast slightly to 22 million pounds for the full year. Spot uranium prices hit USD 53.50 last week up 46% since June and are expected to continue rising as demand outstrips supply. Smaller uranium producers were also up sharply on the Toronto Stock Exchange.

Mr Fraser Phillips analyst of RBC upgraded Cameco to sector outperform based on the strong outlook for uranium prices. He said that Cameco remains the leader in the uranium industry.

Saskatchewan based Cameco owns various properties in the uranium rich Athabasca Basin including the Cigar Lake mine which has reserves of 209.3 million pounds and is set to come online in 2013.

Credit Suisse boosted its target price for Cameco to CAD 38 from CAD 33 while RBC raised its target price to CAD 45 from CAD 30.00. Shares in Cameco were up 3.4% at CAD 37.22 on the Toronto Stock Exchange after rising as much as 7.2% to CAD 38.57 earlier in the session.

(Sourced from Reuters)