BofA Initiates Coverage of Centrus Energy (LEU) Stock With Buy Rating

On June 4, BofA Securities analysts initiated coverage of Centrus Energy Corp. (NYSE:LEU)’s stock with a “Buy” rating and a price target of $160, as reported by The Fly.

BofA Initiates Coverage of Centrus Energy (LEU) Stock

A vast construction site with heavy machinery, materials, and workers, showcasing the company’s global presence.

It has been identified as the only publicly traded company that specializes in enriched nuclear fuel, a sector that is presently on a growth trajectory. Centrus Energy Corp. (NYSE:LEU) is a leading distributor of low-enriched uranium (LEU) nuclear fuel in the US, which is tagged as the largest nuclear power market globally.

The firm’s analysts highlighted Centrus Energy Corp. (NYSE:LEU)’s technical solutions segment, which consists of a high-assay low-enriched uranium (HALEU) fuel business. This segment remains critical for next-gen reactors, as well as possesses the potential for future expansion.

BofA Securities, which is currently bullish on the nuclear fuel demand, believes that Centrus Energy Corp. (NYSE:LEU) benefits from significant entry barriers as one of the only two licensed producers of enriched uranium in the US. Furthermore, it is the only company licensed for national security applications.

In Q1 2025, the company’s revenue from the LEU segment came in at $51.3 million and $23.6 million for the 3 months to March 31, 2025, and 2024, respectively, demonstrating a rise of $27.7 million (or 117%). Centrus Energy Corp. (NYSE:LEU)’s backlog amounted to $3.8 billion as of March 31, 2025, which extends to 2040.

While we acknowledge the potential of LEU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than LEU and that has 100x upside potential, check out our report about this cheapest AI stock.

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