Centrus Energy: JP Morgan maintains Neutral, raises PT to $164 from $150.

Centrus Energy: JP Morgan maintains Neutral, raises PT to $164 from $150.

JP Morgan has revised its price target for Centrus Energy Corp. (LEU) to $164, up from $150, while maintaining a Neutral rating. The investment bank's updated assessment comes amidst Centrus Energy's robust financial performance in the second quarter of 2025. The company reported an earnings per share (EPS) of $1.59, significantly surpassing the anticipated $0.84, leading to an EPS surprise of 89.29%. Revenue reached $154.5 million, exceeding projections by 18.68% [1].

Following the earnings announcement, Centrus Energy’s stock surged by 20.79% in after-hours trading, closing at $236.67. The stock’s performance has been exceptional, with InvestingPro data showing a 493.89% return over the past year and a 220.97% YTD gain. Despite a year-over-year revenue decline of $34.5 million, the company’s gross margin increased to 35%, up from 19% in the prior year, highlighting improved operational efficiency [1].

JP Morgan's analysts highlighted Centrus Energy's strong position in the nuclear energy market, particularly its status as the only Western producer of virgin HALEU. The company's expansion plans, including the target of reaching 96 cascades with the first cascade expected to be operational in 42 months, have been noted as potential drivers for growth [1].

The investment bank also acknowledged potential risks, including supply chain disruptions, market saturation, and regulatory changes. However, JP Morgan remains optimistic about Centrus Energy's ability to navigate these challenges and capitalize on growth opportunities in the nuclear energy market.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-centrus-energy-q2-2025-earnings-beat-expectations-stock-surges-93CH-4173718