JPMorgan Comments on Centrus Energy (LEU)

JPMorgan Comments on Centrus Energy (NYSE: LEU)

The analyst comments "LEU - Post-Launch Investor Feedback: We spoke with investors following our recent initiation of enriched uranium supplier, Centrus Energy (link), who generally agreed with our high risk/high reward thesis and questioned how sustainable current valuation is. Discussions focused on: 1) DOE funding scenarios, 2) the broker-trader business outlook, 3) the competitive landscape among Western players, and 4) how to think about the recent outperformance. While we didn’t receive too much pushback on the thesis, across the board, investors highlighted how the wide variety of outcomes around capex, funding, timing, production economics, and geopolitical uncertainty can make it difficult to underwrite the stock’s levels today, which we agree prices in a high level of financial and operational success with few granular guideposts as to what the business could look like on a longer-term basis. Please see our note for more detailed takeaways."

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