Centrus Energy (LEU) Stock Forecast & Price Target

Centrus Energy Corp. operates primarily through its Low-Enriched Uranium (LEU) segment, which is expected to benefit from China's increasing appetite for nuclear power, as the country has notably grown its nuclear share from nearly zero in the 1990s to the mid-single digits today. The substantial momentum in China's nuclear capacity expansion, coupled with the recent acceleration of new projects coming online, indicates a rebound in nuclear infrastructure development that could enhance demand for nuclear fuel supplies. Additionally, China's efforts to establish a comprehensive domestic nuclear supply chain and invest in advanced technologies such as Small Modular Reactors (SMRs) further strengthens the long-term growth potential for Centrus Energy's business.

Centrus Energy Corp faces a declining demand for nuclear power, with generation expected to drop from nearly 18% in the mid-1990s to just under 9% by 2024, primarily due to safety concerns and the rise of alternative energy sources, particularly in Europe. Additionally, the aging of nuclear fleets and political phase-outs further exacerbate the challenges facing the industry. The impending ban on Russian Low-Enriched Uranium and Separative Work Units by the end of 2028 is anticipated to create a significant supply gap, likely leading to increased prices that could strain Centrus's revenue potential.