Barclays Starts Centrus Energy Corp. (LEU) at Equalweight

Barclays initiates coverage on Centrus Energy Corp. (NYSE: LEU) with a Equalweight rating and a price target of $207.00.

The analyst comments "Initiating coverage of Centrus Energy (LEU) at Equal Weight and a PT of $207: As we noted with with our January nuclear initiations of OKLO and SMR, LEU is a way to wade into the newfound demand for nuclear energy. The company has historically been a broker of enriched nuclear fuel and uranium, selling foreign produced enriched uranium to American utilities looking to restock their power plants. In recent years, while maintaining its brokerage business, Centrus has been working its way towards enriching uranium itself. The necessary Nuclear Regulatory Commission (NRC) licenses have been approved, and the company has begun investing capital into facilities that will eventually be able to enrich roughly half of the country's total domestic output. Centrus' timeline aligns very fortunately alongside three nuclear tailwinds: (1) the impending ban of Russian uranium imports, (2) the increased power demand brought about by the data center buildout, and (3) the rapidly expanding array of advanced and small modular reactor candidates. These three elements are set to create an acute uranium shortage later this decade and into the next, in our view, and separate work unit (SWU - a measurement of enriched uranium output) prices have already risen significantly as a result. Centrus has $2.4bn worth of backlog in enriched uranium. As a recipient of a category II NRC license, it is the only company in the US with the ability to commercially enrich high assay low enriched uranium (HALEU), the fuel which is planned to be used by many of the next generation advanced reactors. This provides a significant moat in the near term, with demand for this fuel set to spike."

For an analyst ratings summary and ratings history on Centrus Energy Corp. click here. For more ratings news on Centrus Energy Corp. click here.

Shares of Centrus Energy Corp. closed at $184.12 yesterday.

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