A volatile Friday session for Centrus Energy Corp. (NYSE: LEU) ended on a bullish note, with shares rallying 10.2% intraday after two separate firms lifted their ratings on the same day.
Roth Capital analyst Joe Reagor drove the initial momentum, moving his firm’s stance on Centrus from Neutral to Buy while holding his price target steady at $115.
That target implies a potential gain of 29.2% from the stock’s November 5 closing price of $89.03, even as shares had opened Friday’s session down 4.2% at $88.69.
Seaport Research Partners added to the positive pressure, independently upgrading Centrus to an “overweight” rating on the same day, reinforcing the bullish shift.
Reagor’s reasoning centered on valuation and strategic positioning, with Roth Capital concluding that the time had come to take a more constructive view given the depth of the share price decline.
The firm also pointed to Centrus’s acquisition of Westerman as a factor that should help cushion an anticipated drop in revenue going forward.
The upgrades arrived despite a decidedly weak quarterly earnings report, with Centrus posting a loss of $0.46 per share against analyst expectations of a $0.13 loss.
Revenue also disappointed, falling 25.9% compared to the same period a year earlier to reach $55.5 million, adding pressure to a stock that has already shed considerable value in recent months.
The broader analyst community remains largely constructive on the nuclear fuel supplier, with MarketBeat data showing a consensus “Moderate Buy” rating drawn from one Strong Buy, nine Buy, and nine Hold recommendations.
The consensus 12-month price target sits at $193.12, though the five most recent notes published over the past 30 days reflect a tighter range, with targets spanning $120 to $188.
The divergence between the near-term price targets from Roth Capital and the broader consensus figure highlights ongoing disagreement about how quickly Centrus can stabilize its financials after a difficult stretch of results.
Friday’s dual upgrade nonetheless signals that at least some on Wall Street believe the worst of the selling pressure may already be priced in, even with execution risk still on the table.
