Centrus Energy Stock Nearly Quadruples Amid Surging Nuclear Demand
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Surging Market Demand: Centrus Energy's stock has nearly quadrupled over the past 12 months, driven by increasing nuclear demand, new partnerships, and contract extensions, indicating strong performance in the nuclear energy sector.
- Revenue Growth Trend: Although revenue fell to $514 million in 2014, it is projected to grow to $442 million by 2024 at a CAGR of 15%, reflecting a recovery in global nuclear demand and expansion of the HALEU business.
- HALEU Market Potential: Centrus began producing high-assay low-enriched uranium (HALEU) for the U.S. government in 2023, with the HALEU market expected to expand at a CAGR of 21.9% from 2025 to 2033, potentially becoming a major growth driver in the future.
- Valuation and Growth Constraints: With a market cap of $5.2 billion and a stock price of $286, translating to a P/E ratio of 72, while the nuclear market remains strong, high valuations may limit further stock price increases.
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 275.67 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.
12 Analyst Rating
8 Buy
4 Hold
0 Sell
Moderate Buy
Current: 286.250
Low
117.00
Averages
275.67
High
390.00
Current: 286.250
Low
117.00
Averages
275.67
High
390.00
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.
