Centrus Energy: DOE HALEU Contract Validates Unique Strategic Position and Underpins Buy Rating

In a report released today, Sean Milligan from Needham maintained a Buy rating on Centrus Energy, with a price target of $357.00.

Sean Milligan has given his Buy rating due to a combination of factors tied to Centrus Energy’s unique strategic position and newly secured government support. He highlights that the Department of Energy has awarded Centrus a $900 million task order specifically for HALEU enrichment, marking the first substantial deployment under the broader HALEU Production Contract. This award is particularly meaningful because Centrus is currently the only U.S. firm licensed to enrich uranium up to HALEU levels and is the sole Western supplier already producing this material, with a demonstrated track record of delivering significant volumes to the DOE. In his view, this contract both validates Centrus’s technology and underscores its critical role in the emerging advanced nuclear fuel supply chain.
Milligan also emphasizes that the funding structure, based on milestone-driven disbursements, helps manage execution risk while supporting Centrus’s ongoing expansion efforts. The task order is seen as a major step in reducing uncertainty around the company’s Piketon, Ohio enrichment project, where new capacity is expected to come online near the decade’s end. He connects this with the recent start of industrial-scale centrifuge manufacturing in Oak Ridge, Tennessee, which was initiated in anticipation of federal support and is now reinforced by the DOE announcement. Taken together, the secured contract, proven operating capability, and clearer pathway to future capacity growth underpin his positive view on the stock and support his Buy recommendation.

In another report released on December 22, Lake Street also maintained a Buy rating on the stock with a $340.00 price target.