Centrus Energy (LEU) Stock Forecast & Price Target

Centrus Energy Corp is strategically positioned to benefit from the increasing global demand for nuclear power, particularly as countries like China expand their nuclear capacities, creating a robust market for nuclear fuel and services. The company’s primary revenue is generated from its Low-Enriched Uranium (LEU) segment, which stands to gain from the recent acceleration in nuclear project buildouts and the rebound from previously delayed projects. With China advancing its nuclear supply chain and embracing innovative technologies, such as small modular reactors (SMRs), Centrus Energy is poised to capitalize on these trends and strengthen its market presence both domestically and internationally.

Centrus Energy's stock outlook is negative due to the persistent decline in nuclear power generation, which has decreased from nearly 18% in the mid-1990s to under 9% projected by 2024, attributed to safety concerns and the aging of fleet infrastructure. Additionally, the political phase-outs and increasing competitiveness of alternative energy sources, particularly in Europe, have compounded the challenges facing the nuclear industry. Furthermore, the impending ban on Russian low-enriched uranium and separative work units by the end of 2028 poses a significant supply gap with minimal alternatives, likely leading to upward pressure on prices, which could strain Centrus Energy's profitability.