Stifel reiterates Buy rating on Centrus Energy stock with $220 price target

Investing.com - Stifel has reiterated its Buy rating on Centrus Energy Corp. (NYSE:LEU) with a price target of $220.00, highlighting the company’s unique position in the nuclear energy sector. The stock has demonstrated remarkable performance, delivering a 328% return over the past year, with analyst targets ranging from $102 to $300. InvestingPro data reveals 18 additional key insights about LEU’s investment potential.

The investment firm noted that the deterioration of the U.S. nuclear supply chain presents a significant challenge for the resurgence of nuclear power in the United States market.

Stifel emphasized that Centrus Energy, as the only publicly-traded nuclear enrichment company with established government connections, is strategically positioned to play a crucial role in rebuilding the nuclear supply chain.

The firm pointed to Centrus Energy’s existing footprint, technological expertise, and track record as key factors enabling the company to source low-enriched uranium (LEU) for current reactors while developing new enrichment capabilities for advanced nuclear reactors.

Stifel’s $220 price target is based on its long-term discounted cash flow analysis of the company.

In other recent news, Centrus Energy Corp. has delivered 900 kilograms of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy, achieving its Phase II contract target. This milestone allows Centrus to move into Phase III, with a contract extension permitting production through June 30, 2026, and options for further renewal. The company has been actively involved in reestablishing domestic uranium enrichment capabilities since 2019, with significant support from the DOE. In addition to this development, Stifel initiated coverage on Centrus Energy with a Buy rating and a $220 price target, citing its crucial role in the U.S. nuclear supply chain. William Blair also reiterated an Outperform rating, emphasizing Centrus’s position as a key player in the nuclear revival and a critical domestic uranium enricher. Meanwhile, JPMorgan initiated coverage with a neutral rating and a $148 price target, noting the need for government funding to support Centrus’s enrichment efforts. These analyst ratings reflect Centrus’s strategic importance in national energy policy and its potential for future growth in nuclear fuel markets.

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