Received a “buy” rating from Bank of America! Centrus Energy (LEU.US) Stock Hits 52-Week High

The Zhitong Finance App learned that on Wednesday, Bank of America first gave Centrus Energy (LEU.US) a “buy” rating, with a target price of $160. According to Bank of America, Centrus Energy is “the only publicly listed concentrated nuclear fuel company in the world — at a time when the industry is poised to take off.” Boosted by this news, Centrus Energy's US stock closed up 7.27% to $141.0 on Wednesday. At one point, it hit a 52-week high of $142.55 in the intraday period.

Bank of America analyst Lawson Winder pointed out that Centrus Energy is America's leading supplier of low-enriched uranium (LEU) nuclear fuel, and the US itself is the world's largest nuclear energy market. Centrus Energy also has a technology solutions division involved in the Highly Abundant Low-Enriched Uranium (HALEU) fuel business for next-generation reactors. Furthermore, the company plans to build its own LEU production capacity, which is expected to start production in 2029, followed by a 10-year expansion plan.

Lawson Winder said that benefiting from huge barriers to entry into the industry, Centrus Energy is one of only two licensed producers of enriched uranium in the US and the only one licensed for national security applications. He added that Bank of America is optimistic about the prospects for global nuclear fuel demand, and the Trump administration's emphasis on nuclear energy may further boost the positive expectations of the US market.

Furthermore, Lawson Winder said that Centrus Energy is in a sound financial position and has $653 million in cash as of March 31, thanks to its LEU core business, which continuously generates free cash flow. He also pointed out that Centrus Energy is expected to receive large-scale financial support from the US government. Currently, the US Congress has allocated more than 3.4 billion US dollars, which may be used for related subsidies and development aid.