Centrus Energy positioned for ‘significant’ DOE funding, says UBS

UBS analyst Jon Windham believes Centrus Energy’s (LEU) start of centrifuge manufacturing underscores the scale of demand for enrichment services to fuel the existing U.S. reactor fleet and meet growing electricity demand from artificial intelligence data centers in the 2030s. Given the upcoming U.S. import ban on Russian enrichment volumes after 2027, it is likely there will be increasing focus on building a source of domestic U.S. enrichment supply, the analyst tells investors in a research note. UBS sees Centrus as well positioned longer-term given the long-dated nature of the company’s capacity build-out. It believes Centrus is a likely to be a “significant” awardee of the Department of Energy funding. The firm has a Neutral rating on the shares with a $245 price target