Centrus Energy Stock Falls 3.3% Amidst Unexplained Decline

Written by Emily J. Thompson, Senior Investment Analyst

LEU+9.17%

UEC+4.9%

DNN+9.39%

Source: Fool

Updated: 2d ago

0mins

Source: Fool

Unexplained Stock Decline: Centrus Energy's stock fell 3.3% by 12:25 p.m. ET today, despite uranium prices rising 12% over the past few months to $88.40 per pound, the highest since May 2024, indicating strong market demand.
Uranium Market Developments: South Korea's announcement to build two large nuclear plants in the 2030s, operational by 2037 and 2038, is bullish for global uranium demand, yet it has not prevented Centrus Energy's stock decline, reflecting complex market sentiments.
Strong Financial Position: With a price-to-earnings ratio of 46, Centrus Energy is not cheap, but it is profitable and has a solid cash flow, highlighting its investment value in nuclear stocks, particularly in the production of high-assay low-enriched uranium (HALEU) fuel.
Market Outlook Analysis: Centrus Energy's balance sheet shows more cash than debt, and its free cash flow significantly exceeds net income, with an enterprise value-to-free cash flow ratio of only 34x, indicating strong investment potential in the nuclear sector despite current stock volatility.

LEU

$337.76+Infinity%1D

Analyst Views on LEU

Wall Street analysts forecast LEU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LEU is 297.10 USD with a low forecast of 117.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

14 Analyst Rating

10 Buy

4 Hold

0 Sell

Moderate Buy

Current: 309.390

Low

117.00

Averages

297.10

High

390.00

Current: 309.390

Low

117.00

Averages

297.10

High

390.00

Roth Capital

Neutral

maintain

$117 -> $125

2026-01-08

Reason

Roth Capital

Price Target

$117 -> $125

AI Analysis

2026-01-08

maintain

Neutral

Reason

Roth Capital raised the firm's price target on Centrus Energy to $125 from $117 and keeps a Neutral rating on the shares. The $900M award from the DOE to expand its HALEU production capabilities allows Centrus to be well-positioned to move forward with capacity expansions, the analyst tells investors in a research note.

Northland

Outperform

maintain

$300 -> $325

2026-01-07

Reason

Northland

Price Target

$300 -> $325

2026-01-07

maintain

Outperform

Reason

Northland raised the firm's price target on Centrus Energy to $325 from $300 and keeps an Outperform rating on the shares after the company got an official award of $900M from the DOE to help jump start the domestic nuclear fuel supply chain. The firm's increased target reflects an earlier timeline to market of 2029 versus its prior 2030 forecast and the de-risking of funding, the analyst tells investors.

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BofA

Neutral

maintain

$285 -> $340

2026-01-06

Reason

BofA

Price Target

$285 -> $340

2026-01-06

maintain

Neutral

Reason

BofA raised the firm's price target on Centrus Energy to $340 from $285 and keeps a Neutral rating on the shares after the company was among three companies awarded $900M by the Department of Energy for nuclear fuel capacity funding. The funding is earmarked for the construction of new high-assay low enriched uranium capacity the U.S. The $900M for Centrus is slightly less than the $1.7B award that the firm had assumed in its model, but it thinks that more U.S. government agency funding for Centrus down the road "should not be entirely ruled out," the analyst tells investors.

UBS

Jon Windham

Neutral

maintain

$245

2025-12-24

Reason

UBS

Jon Windham

Price Target

$245

2025-12-24

maintain

Neutral

Reason

UBS analyst Jon Windham believes Centrus Energy's start of centrifuge manufacturing underscores the scale of demand for enrichment services to fuel the existing U.S. reactor fleet and meet growing electricity demand from artificial intelligence data centers in the 2030s. Given the upcoming U.S. import ban on Russian enrichment volumes after 2027, it is likely there will be increasing focus on building a source of domestic U.S. enrichment supply, the analyst tells investors in a research note. UBS sees Centrus as well positioned longer-term given the long-dated nature of the company's capacity build-out. It believes Centrus is a likely to be a "significant" awardee of the Department of Energy funding. The firm has a Neutral rating on the shares with a $245 price target.

About LEU

Centrus Energy Corp. is a supplier of nuclear fuel components for the nuclear power industry. Its segments include Low-Enriched Uranium (LEU) and Technical Solutions. Its LEU segment supplies various components of nuclear fuel to commercial customers from its global network of suppliers. The LEU segment consists of two components: SWU and natural uranium hexafluoride. It supplies LEU and its components to both domestic and international utilities for use in nuclear reactors worldwide. It provides LEU from multiple sources, including its inventory, medium- and long-term supply contracts, and spot purchases. It also sells natural uranium hexafluoride and occasionally sells uranium concentrates. The Technical Solutions segment provides advanced engineering, design, and manufacturing services to government and private sector customers. It is deploying uranium enrichment and other capabilities necessary to produce advanced nuclear fuel to power existing reactors around the world.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.