Evercore says MOU with ‘credible’ counterparty suggests confidence in Centrus

After Centrus Energy (LEU) announced the signing of a Memorandum of Understanding with Korea Hydro and Nuclear Power and POSCO International to explore potential investment to support the expansion of its uranium enrichment plant in Ohio, Evercore ISI noted that the MOU is not a binding agreement, but adds that the signing of the MOU with “a very credible nuclear counterparty suggests a confidence in Centrus and in centrifugal enrichment.” The firm, which adds that the MOU conveys “significant support and confidence behind the company’s ability to place itself as a foundational piece of the inevitable domestic nuclear fuel supply chain buildout,” keeps an Outperform rating and $252 price target on Centrus shares.