Jed Dorsheimer, an analyst from William Blair, has initiated a new Buy rating on Centrus Energy (LEU).
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Jed Dorsheimer has given his Buy rating due to a combination of factors that highlight Centrus Energy’s strategic positioning and potential for growth. As the only U.S.-owned uranium enricher, Centrus Energy is poised to benefit from both technological advantages and national security considerations. The company’s transition from a broker of foreign nuclear fuel to a producer and supplier positions it to capture a significant share of the U.S. market for low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU).
Furthermore, the enrichment process is identified as a critical bottleneck in the nuclear energy supply chain, with a total addressable market (TAM) of $15 billion. Centrus Energy’s unique position as the sole source of unobligated uranium enrichment in the U.S., coupled with its Nuclear Regulatory Commission licenses, underscores its potential to meet domestic demand. The Trump administration’s focus on promoting the commercial nuclear power industry further supports Centrus Energy’s growth prospects. Dorsheimer’s valuation analysis, projecting a fair value of $185 per share, suggests a 63% upside, reinforcing the Buy recommendation.
In another report released on May 14, Evercore ISI also initiated coverage with a Buy rating on the stock with a $145.00 price target.