Professional
Added to YB: 2020-11-13
Pitch date: 2020-11-13
LEU [bullish]
Centrus Energy Corp.
+2296.63%
current return
Author Info
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Company Info
Centrus Energy Corp. supplies nuclear fuel components for the nuclear power industry in the United States, Belgium, Japan, the Netherlands, and internationally.
Market Cap
$4.5B
Pitch Price
$10.39
Price Target
30.00 (-88%)
Dividend
N/A
EV/EBITDA
45.16
P/E
39.82
EV/Sales
8.93
Sector
Oil, Gas and Consumable Fuels
Category
growth
Centrus Energy: A Low Risk High Reward Play On Uranium
LEU: Sole US-owned uranium enricher w/ billions in IP. Reset contracts increase profitability. Downside limited w/ LEU price falling from $140 to $40/lb, now sells at $55/lb. Nuclear has bipartisan support for carbon-free baseline power. Partnered w/ DOE for HALEU, 4x stronger fuel enabling cheaper reactors. HALEU demand 40%+ CAGR to 2035, multi-billion $ mkt. $25-30M FCF at current, 4x upside on IP value alone + future HALEU monopoly. Risks: HALEU delay, catalysts: uranium prices & geopolitics.
Read full article (5 min)