Centrus Energy (LEU) Stock Forecast & Price Target

Centrus Energy Corp is positioned favorably due to the increasing global demand for nuclear energy, particularly in China, which has expanded its nuclear share significantly and continues to enhance its capacity through new project additions. The recent acceleration in buildout activities, driven by the completion of previously delayed projects, presents a growth opportunity for Centrus Energy, particularly within its Low-Enriched Uranium (LEU) segment, which constitutes the majority of its revenue. Furthermore, as China develops its domestic nuclear supply chain and embraces advanced technologies like small modular reactors (SMRs), this trend could drive greater demand for nuclear fuel and associated services, ultimately benefiting Centrus Energy's operations and financial performance.

Centrus Energy faces significant challenges due to a long-term decline in nuclear power generation, decreasing from nearly 18% in the mid-1990s to approximately 9% by 2024, which is attributed to safety concerns, aging fleets, and increasing competition from alternative energy sources. Additionally, the impending ban on Russian Low-Enriched Uranium (LEU) and Separative Work Units (SWU) by the end of 2028 is expected to create a material supply gap, potentially leading to increased prices for SWUs amidst limited available alternatives. These factors collectively indicate deteriorating market conditions for Centrus Energy's primary revenue-generating segment, further contributing to an unfavorable outlook for the company's stock.