Centrus Energy Stock Soars 7.27% on Bank of America Buy Rating

Centrus Energy (LEU.US) received a "buy" rating from Bank of America on Wednesday, with a target price set at 160 dollars. This news boosted the company's stock, which closed the day up by 7.27% at 141.0 dollars, reaching a 52-week high of 142.55 dollars during intraday trading. Centrus Energy is a leading low-enriched uranium (LEU) nuclear fuel supplier in the United States, which is the world's largest nuclear energy market.

Bank of America analyst Lawson Winder highlighted that Centrus Energy is the only publicly traded company globally that specializes in concentrated nuclear fuel. This comes at a time when the industry is poised for significant growth. Winder also noted that Centrus Energy has a technology solutions division focused on high-assay low-enriched uranium (HALEU) fuel for next-generation reactors. The company plans to build its own LEU production capacity, with operations expected to commence in 2029, followed by a decade-long expansion plan.

Winder emphasized that Centrus Energy benefits from substantial industry barriers to entry, being one of only two licensed uranium enrichment producers in the United States and the sole producer with a national security application license. He added that Bank of America is optimistic about the global demand for nuclear fuel, with the Trump administration's focus on nuclear energy potentially further boosting positive market expectations in the United States.

Furthermore, Winder pointed out that Centrus Energy has a robust financial position, holding 653 million dollars in cash as of March 31. This financial strength is attributed to the company's core LEU business, which consistently generates free cash flow. Winder also mentioned that Centrus Energy is likely to receive substantial financial support from the U.S. government. The U.S. Congress has already allocated over 3.4 billion dollars, which could be used for related subsidies and development assistance.