Centrus Energy: Strategic Transition and Growth Potential Drive Buy Rating

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

Jed Dorsheimer has given his Buy rating due to a combination of factors that highlight Centrus Energy’s strategic positioning and growth potential. The company’s transition from a broker to a producer of enriched uranium is a significant shift that aligns with the U.S. government’s push to develop a domestic uranium enrichment supply chain. This transition is supported by recent executive orders aimed at boosting the domestic nuclear industry, which could expedite Centrus’s development efforts.
Furthermore, Centrus Energy’s valuation presents an attractive opportunity. The company’s shares trade at a multiple slightly above its peers, but the potential upside is substantial. With a fair value estimate of $185 per share, there is a projected 41% increase from the current share price. Additionally, Centrus’s unique position as the only wholly U.S.-owned uranium enrichment company with necessary licenses positions it favorably for government funding, especially as trade barriers threaten the supply of enriched uranium from foreign sources.

In another report released today, Bank of America Securities also initiated coverage with a Buy rating on the stock with a $160.00 price target.

Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LEU in relation to earlier this year.