Evercore ISI analyst Nicholas Amicucci maintained a Buy rating on Centrus Energy yesterday and set a price target of $252.00.
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Nicholas Amicucci has given his Buy rating due to a combination of factors influencing Centrus Energy’s strategic position and potential growth. The recent signing of a Memorandum of Understanding with Korea Hydro & Nuclear Power and POSCO International signifies strong confidence in Centrus’s ability to expand its uranium enrichment capabilities, which is crucial for the domestic nuclear fuel supply chain. This move comes on the heels of a successful convertible senior note offering, providing the company with significant financial resources to advance its projects.
Despite the non-binding nature of the MOU, it highlights the trust in Centrus’s technology and its role in the nuclear sector. The recent pullback in share price, coupled with the alleviation of brokerage business risks due to DOE allowances, has reduced previous concerns. Furthermore, the anticipated DOE allocation remains a pivotal catalyst for the company, with Centrus actively preparing through its manufacturing readiness program. The ongoing support for nuclear energy, driven by private investments and government policies, underscores the growing importance of nuclear power in meeting future energy demands, particularly in the context of AI and large-scale energy needs.
Based on the recent corporate insider activity of 25 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.