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Investing.com - Evercore ISI lowered its price target on Centrus Energy Corp. (NYSE:LEU) to $390.00 from $452.00 on Thursday, while maintaining an Outperform rating on the stock. Despite the reduced target, this still represents significant upside from the current price of $277.78, which has fallen 15.02% over the past week according to InvestingPro data.
The firm cited Centrus Energy ’s muted third-quarter 2025 financial results and questions surrounding Department of Energy allocation timing as factors in the adjustment. Despite these concerns, Evercore ISI indicated that the long-term thesis and market fundamentals for Centrus continue to strengthen. InvestingPro data shows the company remains profitable with $454.1 million in revenue and $6.17 in diluted earnings per share over the last twelve months, though it trades at a high P/E ratio of 45.81 relative to its growth rate.
Evercore ISI noted increasing demand for enriched uranium since the company’s August earnings call, with management indicating that U.S. Government announcements and additional restarts would increase demand by 2.5 million SWU per year. Beginning in 2028, when Russian imports are banned, this would create a supply deficit of approximately 6 million SWU. This aligns with the company’s strong long-term performance, with InvestingPro showing an impressive 389% year-to-date return.
The firm also highlighted an October 8 Notice of Intent from the NNSA to award American Centrifuge Operating, LLC, a wholly owned subsidiary of Centrus, a sole source contract within its Defense Fuels Program, potentially providing additional public investment support.
Evercore ISI characterized the company’s ATM announcement as a prudent measure to raise capital when available rather than a reactionary move, while noting that SWU prices continue to increase despite being "artificially depressed" at the current level of approximately $220/SWU.
In other recent news, Centrus Energy reported its Q3 2025 earnings, showcasing an earnings per share (EPS) of $0.19, which significantly surpassed the forecasted $0.08. However, the company’s revenue of $74.9 million did not meet expectations. Despite the positive earnings surprise, the revenue shortfall led to a notable decline in market sentiment. These recent developments have captured the attention of investors and analysts alike. The earnings results have sparked discussions about the company’s financial trajectory. Analysts are closely examining the implications of the revenue miss on future performance. The mixed earnings report highlights the complexities of market reactions.
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