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Investing.com - William Blair reiterated an Outperform rating on Centrus Energy Corp. (NYSE:LEU) following a fireside chat with CEO Amir Vexler on Tuesday, July 8. The company has demonstrated remarkable market performance, with InvestingPro data showing a 326% return over the past year and strong revenue growth of 59% in the last twelve months.
The research firm highlighted Centrus’s unique position as the only unobligated U.S. producer of enriched uranium, meaning it is the only American-owned company and technology in this critical sector. William Blair encouraged investor exposure to Centrus as a key beneficiary of the nuclear revival. According to InvestingPro analysis, the company maintains solid financial health with a current ratio of 2.12, indicating strong liquidity to support its growth initiatives.
A key topic discussed was Centrus’s transition from an importer/broker of foreign nuclear fuel to a domestic uranium enricher. The company outlined its strategic focus to supply current demand for low-enriched uranium (LEU) before expanding its high-assay low-enriched uranium (HALEU) capacity as the small modular reactor market grows.
William Blair noted that the U.S. nuclear fleet requires 15 million separative work units (SWU) of enriched uranium annually, yet only 4.3 million SWU are produced domestically by foreign-owned Urenco. The remaining supply is imported, with 25% coming from Russia, creating what the firm called "a national security issue of the highest order."
Centrus currently trades at 35x William Blair’s 2026 EV/EBITDA estimate, above its peers at 24x, with the firm estimating a bull case fair value of $246 per share, representing 41% upside from the current share price of $174. InvestingPro analysis suggests the stock is currently overvalued, with 14 additional exclusive ProTips and a comprehensive Pro Research Report available for deeper insight into the company’s valuation and growth prospects.
In other recent news, Centrus Energy Corp. announced it has successfully delivered 900 kilograms of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy, fulfilling the Phase II target of its ongoing contract. This achievement marks a significant milestone as the company transitions to Phase III, with a contract extension allowing production through June 30, 2026. The U.S. Department of Energy has exercised an option to extend Centrus’ HALEU production contract, valued at approximately $110 million, with potential for further renewal for up to eight more years. JPMorgan recently initiated coverage on Centrus Energy with a neutral rating, citing the company’s unique position in the nuclear value chain but recommending waiting for a better entry point. Meanwhile, Evercore ISI raised its price target for Centrus Energy to $205 from $145, maintaining an Outperform rating, driven by developments such as TerraPower’s capital raise and Centrus’ agreement to supply HALEU for advanced reactors. This extension and the price target increase highlight Centrus’ strategic importance in national energy policy and its role in advancing nuclear technology. Centrus Energy continues to operate its HALEU production facility at the American Centrifuge Plant in Piketon, Ohio, as part of its efforts to meet commercial and national security requirements. These developments reflect Centrus Energy’s ongoing contributions to the nuclear sector and its strategic partnerships with key industry players.
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