Centrus Energy Shares Rise 1.1% Amid 50% Volume Drop and 335th Liquidity Rank as BofA Downgrades to Neutral Despite Record Earnings and HALEU Progress

Centrus Energy (LEU) rose 1.10% on August 7, 2025, with a trading volume of $350 million, down 50.33% from the prior day, ranking 335th in market liquidity. The stock faces mixed analyst signals after Bank of America (BofA) downgraded its rating to Neutral from Buy, citing valuation concerns despite raising the price target to $285 from $210. The adjustment followed Centrus’ Q2 2025 earnings, which exceeded expectations driven by strong performance in its low-enriched uranium (LEU) segment and favorable contract execution. The firm reported a $154.5 million revenue, surpassing forecasts by 18.7%, and completed phase 2 of its HALEU contract with the U.S. Department of Energy, while bolstering liquidity via an at-the-market equity program.

Analysts highlight Centrus’ robust financial position, including a 12.7% year-over-year revenue growth and a 36% gross profit margin. However, elevated valuation metrics such as an EV/EBITDA of 35.8x and a price-to-book ratio of 11x raise overvaluation concerns. BofA cited the U.S. government’s urgency to expand domestic enrichment capacity as a long-term tailwind, though the firm views current shares as “fairly valued.” The stock’s recent 250% year-to-date surge and 8% weekly gain have prompted caution among investors, with a 12-analyst consensus averaging a $202.52 target, implying a 14% potential downside from the current price.

Centrus’ $3.7 billion backlog and progress on HALEU contracts position it to benefit from government-led infrastructure projects. Nevertheless, liquidity constraints and mixed valuation signals suggest near-term volatility. The strategy of holding high-volume stocks for one day has historically outperformed benchmarks in volatile markets, underscoring liquidity’s role in short-term returns. However, this approach carries risks, and investors must weigh market conditions against their risk tolerance before deployment.