12:06 PM EDT, 06/04/2025 (MT Newswires) -- Centrus Energy ( LEU ) holds a unique position as the world's only publicly traded nuclear enrichment company, offering investors exposure to growing demand for carbon-free power, analysts at BofA Securities said Wednesday in a research note.

The brokerage initiated coverage of Centrus with a buy rating and a $160 price objective, citing significant upside as nuclear power gains traction with utilities and large electricity users, including AI-focused technology firms.

Centrus is the only US producer of enriched uranium licensed for national security uses. The company also benefits from strong federal support, with more than $3.4 billion in Congressional appropriations backing its role in nuclear fuel development.

Centrus is positioned to benefit from a broader policy shift aimed at reducing reliance on foreign uranium, particularly from Russia, and rebuilding domestic enrichment capacity, according to the note.

BofA said Centrus also operates a complementary business focused on high-assay low-enriched uranium, a next-generation fuel type used in advanced reactors. The firm expects additional HALEU enrichment capacity to come online by 2029, with further expansion over the following decade.

The analysts pointed to high barriers to entry and an undersupplied U.S. market as structural advantages for Centrus. The company held a cash position of $653 million as of March 31 and is one of only two US-licensed producers of enriched uranium.

Risks include Centrus's past reliance on Russian-sourced uranium and potential pricing volatility in enrichment services, BofA said.

The price target is based on a multiple of the company's estimated net asset value, representing a premium to its peers producing nuclear fuel, the analysts said.

Price: 131.82, Change: +1.26, Percent Change: +0.96