Daiwa Securities Maintains Buy as Centrus Energy (LEU) Plans $1 Billion ATM Offering

Centrus Energy Corp. (NYSE:LEU) ranks among the best short squeeze stocks to buy right now. Following a post-earnings non-deal roadshow with management on November 7, Daiwa Securities reaffirmed its Buy rating and $86 price target for Centrus Energy Corp. (NYSE:LEU) on November 10. The firm cited Centrus’s prediction that the U.S. market will experience a severe lack of uranium enrichment supply beginning in 2028.

According to Daiwa, the expected supply interruption is driven by the Russian import waiver expiring at the end of 2027, which would cut off about 25% of the supply of uranium enrichment in the U.S. market.

Additionally, Centrus Energy Corp. (NYSE:LEU) faced pressure after announcing that it had entered into an ATM equity offering sales agreement that will enable it to put up around $1 billion in Class A common stock, with the proceeds going toward general financing and company goals.

Evercore ISI, maintaining an Outperform rating on LEU stock, described the company’s ATM announcement as a smart measure to raise capital when available as opposed to a reactionary move, noting that SWU prices continue to rise even after being “artificially depressed” at the present price of approximately $220/SWU.

Centrus Energy Corp. (NYSE:LEU) is a Maryland-based supplier of nuclear fuel components and services that operates under two business categories: Low-Enriched Uranium and Technical Solutions.

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Disclosure: None. This article is originally published at Insider Monkey.