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Investing.com - William Blair has reiterated an Outperform rating on Centrus Energy Corp. (NYSE:LEU), citing the company’s position as the sole pure-play for exposure to uranium enrichment. The company, which has delivered an impressive 235% return year-to-date and maintains a healthy current ratio of 2.59, continues to demonstrate strong financial fundamentals according to InvestingPro data.
The firm highlighted that Centrus "beat estimates handedly across the board" in its recent quarter and noted positive signals that SWU (separative work unit) pricing continues to rise, despite the quarter reflecting primarily on the current import/brokerage business.
William Blair acknowledged that Centrus trades at an enterprise value of 40 times its 2025 EBITDA estimate, well above its peers at 26 times, but justified the premium given the company’s unique position in uranium enrichment.
The research firm emphasized the national security implications of uranium enrichment, noting that the U.S. nuclear fleet requires 15 million SWU of enriched uranium annually, with only 4.3 million SWU produced domestically by foreign-owned Urenco, while 25% is imported from Russia.
William Blair identified Centrus as "the only unobligated" U.S.-owned company and technology supplier for enriched uranium, positioning it as a key beneficiary of the nuclear revival as the U.S. aims to quadruple nuclear power by 2040.
In other recent news, Centrus Energy reported its financial results for the second quarter of 2025, which significantly surpassed earnings and revenue forecasts. The company achieved an earnings per share of $1.59, nearly doubling the anticipated $0.84, leading to an EPS surprise of 89.29%. Revenue reached $154.5 million, exceeding the forecast of $130.18 million by 18.68%. In a related development, BofA Securities downgraded Centrus Energy from Buy to Neutral, despite raising its price target to $285.00, following the company’s impressive earnings report. The downgrade was attributed to the company’s strong performance in its low-enriched uranium segment, driven by favorable sales timing and contract mix. Additionally, Centrus Energy announced the appointment of Todd Tinelli as the new Chief Financial Officer, effective August 11, replacing Kevin Harrill. Harrill will remain with the company until August 29 to ensure a smooth transition. These developments reflect significant changes and achievements for Centrus Energy in recent times.
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