JP Morgan Initiates “Neutral” Rating on Centrus Energy (LEU) with $148 Target

Centrus Energy Corp. (NYSE:LEU) is one of the top 10 nuclear energy stocks to invest in for the next decade. On June 26, JP Morgan initiated coverage of Centrus Energy’s stock with a “Neutral” rating. The firm also set a $148 price target on the shares.

JP Morgan’s analysts defended their decision, noting that a “sharp run-up” in Centrus Energy’s shares has already captured “much of the benefit from U.S. efforts to bolster domestic enrichment capacity.” They added that the stock has seen significant gains, more than doubling in the past six months and returning an “impressive 172% year-to-date,” trading near $174 at the time of the report. The firm noted the valuation at “roughly 34 times projected enterprise value to EBITDA – twice the one-year average,” which it described as reflecting “a period of ‘atomic’ outperformance.”

While acknowledging the potential, JP Morgan cautioned that converting Centrus’s pilot output at its Piketon, Ohio, site into full commercial production will require “multi-billion-dollar” investment. The bank is looking for “clearer commitments on potential government awards of up to $3.4 billion.” Until this funding picture becomes clearer, JP Morgan views the stock’s “risk-reward looks balanced.”

Centrus Energy Corp. (NYSE:LEU) is a nuclear fuel company. It supplies low-enriched uranium (LEU) for commercial nuclear power plants and provides technical and engineering services to both government and private clients. Its operations include the production of high-assay low-enriched uranium (HALEU), a next-generation fuel for advanced reactors.

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