Centrus Energy: Stifel initiates coverage with Buy rating and $220 price target.

Centrus Energy: Stifel initiates coverage with Buy rating and $220 price target.

July 2, 2025 - Stifel has initiated coverage on Centrus Energy Corp. (NYSE:LEU) with a Buy rating and a price target of $220.00. The stock has demonstrated remarkable performance, delivering a 328% return over the past year and trading near its 52-week high of $211.31.

The investment firm highlighted Centrus Energy’s unique position as the only publicly-traded nuclear enrichment company with long-standing ties to the U.S. government. This strategic positioning allows Centrus to play a critical role in rebuilding the U.S. nuclear supply chain. Stifel noted that the weakened state of the U.S. nuclear supply chain presents a significant challenge for the resurgence of nuclear power in the American market, an area where Centrus could provide solutions.

Centrus Energy possesses the necessary footprint, technological expertise, and track record to source low-enriched uranium (LEU) for existing reactors while developing new enrichment capabilities for advanced nuclear reactors. Stifel based its $220 target price on long-term discounted cash flow analysis, recognizing Centrus Energy’s potential in both current and future nuclear fuel markets.

In other recent news, Centrus Energy Corp. announced the successful delivery of 900 kilograms of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy (DOE), meeting the production target for Phase II of its contract. This achievement aligns with the DOE’s extension of Centrus’s contract, allowing HALEU production through June 30, 2026, with options for further renewal. The extension, valued at approximately $110 million, is part of a partnership to restore domestic uranium enrichment capabilities.

Analyst coverage on Centrus has been notable. William Blair reiterated an Outperform rating, emphasizing the company’s unique position in the nuclear sector. Meanwhile, JPMorgan initiated coverage with a neutral rating, citing valuation concerns despite recognizing Centrus’s role in U.S. energy independence.

Centrus operates two business segments: Low-Enriched Uranium and Technical Solutions, which supply nuclear fuel components and provide advanced uranium enrichment technology, respectively. The company aims to expand its capacity in Ohio to meet the growing demand for HALEU and Low-Enriched Uranium, driven by national priorities and the development of advanced reactors.

References:
[1] https://www.investing.com/news/analyst-ratings/stifel-reiterates-buy-rating-on-centrus-energy-stock-with-220-price-target-93CH-4131912
[2] https://www.gurufocus.com/news/2967145/newmont-nem-receives-buy-rating-with-73-target-by-stifel-nem-stock-news
[3] https://za.investing.com/news/analyst-ratings/stifel-initiates-centrus-energy-stock-with-buy-rating-220-price-target-93CH-3785756
[4] https://ng.investing.com/news/analyst-ratings/stifel-initiates-centrus-energy-stock-with-buy-rating-220-price-target-93CH-2002516