Centrus Energy: Government-Backed Nuclear Fuel Pure Play Positioned to Lead U.S. Nuclear Renaissance

William Blair analyst Jed Dorsheimer has reiterated their bullish stance on LEU stock, giving a Buy rating yesterday.

Jed Dorsheimer has given his Buy rating due to a combination of factors tied to Centrus Energy’s strategic positioning and recent DOE support. He highlights that the $900 million HALEU enrichment award from the Department of Energy underscores both the U.S. government’s commitment to rebuilding a domestic nuclear fuel supply chain and Centrus’s central role in that effort. Because the same centrifuge platform can be used for both HALEU and LEU, he sees this funding as helping to defray first-of-a-kind capital and development costs for the company’s broader enrichment capacity expansion. In his view, this positions Centrus as a primary corporate beneficiary of the emerging U.S. nuclear renaissance and offers investors direct exposure to the fuel supply segment of the industry.
At the same time, Dorsheimer notes that while the precise mechanics of the DOE funding structure and delivery obligations remain unclear, he sees several potential avenues for ongoing financial support, including partnerships with international nuclear players and large technology companies that will need assured fuel for data-center reactors. He acknowledges that Centrus currently trades at a valuation premium versus peers on an EV/EBITDA basis but views this as warranted in light of its unique pure-play enrichment profile and the sector’s favorable momentum. Taken together—government backing, strategic scarcity value, and multiple prospective funding and demand drivers—these elements reinforce his conviction that the stock merits a Buy rating.

Dorsheimer covers the Technology sector, focusing on stocks such as STMicroelectronics, Aehr Test Systems, and Applied Materials. According to TipRanks, Dorsheimer has an average return of 27.3% and a 51.22% success rate on recommended stocks.

In another report released yesterday, Needham also maintained a Buy rating on the stock with a $357.00 price target.