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William Blair Starts Centrus Energy With Outperform, Cites Nuclear Fuel Leadership

William Blair analyst Jed Dorsheimer initiated coverage of Centrus Energy Corp. (NYSE:LEU) on May 28 with an Outperform rating and no price target. The analyst emphasized Centrus Energy’s distinct market position as the sole American-owned uranium enricher, which provides the company with advantages in terms of technology and national security.

Photo by Frédéric Paulussen on Unsplash

Centrus’s shift from a foreign nuclear fuel broker to a manufacturer and supplier should enable the company to capture a sizable portion of the market. According to Dorsheimer, Centrus Energy Corp. is expected to play a significant role in supplying the United States’ commercial nuclear fleet with low-enriched uranium and high-assay low-enriched uranium.

The analyst also highlighted the company’s contribution to reducing U.S. dependence on Russian enrichment capabilities, projecting a $15 billion total addressable market (TAM) that will be fueled by a 13-fold growth in demand for separative work units (SWU) by 2050.

Centrus Energy Corp. 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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