Needham analyst Carter Goman published a report on Centrus Energy (NYSE: LEU), reaffirming a Buy rating while cutting the price target to $264 from $314.
Recently trading around $171, the shares have lagged the broader markets year-to-date, presenting what Goman views as an attractive entry point for investors seeking exposure to the domestic enrichment leader.
Goman attributes the underperformance primarily to a “focus on capital expenditures for the planned Piketon capacity and normalized economics relative to established enrichment competitors Urenco and Orano, in addition to skepticism around timelines for new nuclear
build”.
He leaves the core financial estimates largely unchanged but adjusts the target to reflect a mark-to-market on the cost of capital for the first-of-a-kind (FOAK) Piketon project.
The bullish investment thesis is underscored by Centrus' strategic positioning. As the only US-domiciled enricher, and the sole Western producer with demonstrated high-assay low-enriched uranium (HALEU) capability, Centrus is poised to anchor the rebuilding of America's nuclear fuel c
