Stifel has lowered its price target on Centrus Energy Corp. to $216 from $246, maintaining a Buy rating, citing risks to U.S. Department of Energy funding for the company’s high-assay low-enriched uranium (HALEU) operations.
The adjustment follows a 4.9% pre-market decline in Centrus shares to $177.14, down $9.12 from the prior close. Centrus reported second-quarter results that exceeded expectations, with adjusted diluted earnings per share of $1.77 versus a forecast of $0.97, and revenue of $176.1 million, up 14% year-over-year and ahead of the $146.33 million estimate.
The company’s backlog grew by approximately $600 million sequentially to $4.5 billion, entirely from commercial agreements extending through 2040. Centrus also noted a strong balance sheet with more cash than debt and a current ratio of 5.39.
Centrus met financing contingencies on more than $3 billion of customer contracts for LEU and HALEU, clearing financial hurdles tied to its enrichment backlog. It secured a $900 million DOE HALEU Enrichment award and announced definitive offtake agreements with X-energy and a letter of intent with Oklo, both featuring prepayments.
However, the DOE’s proposed fiscal 2027 budget does not include funding for continued operation of the HALEU cascade, putting roughly $800 million of the company’s Technical Solutions backlog at risk. Stifel’s revised target was derived from a long-term discounted cash flow analysis.
UBS raised its target to $185 from $170, while Barclays initiated coverage with a $207 target and an Equalweight rating. InvestingPro flagged the stock as overvalued relative to its Fair Value estimate.
