Stifel cuts Centrus Energy stock price target on budget risk

Stifel has lowered its price target on Centrus Energy Corp. (NYSE:LEU) shares to $216 from $246 while keeping a Buy rating. The stock is currently trading at $177.14, below the new target. Centrus Energy reported strong second-quarter 2026 results, with an adjusted diluted EPS of $1.77 exceeding Wall Street's forecasted $0.97. Revenue of $176.1 million also surpassed estimates at $146.33 million.

The company has secured $3 billion in financing contingencies for LEU and HALEU customer contracts, removing financial risks from its enrichment backlog. However, the Department of Energy's proposed fiscal year 2027 budget does not fund the continued operation of the HALEU cascade, putting roughly $800 million of Technical Solutions backlog at risk.

Centrus has signed a $900 million DOE HALEU Enrichment award and announced definitive HALEU offtakes with X-energy and Oklo, both with prepayments. The company aims to complete its first centrifuge in Oak Ridge by 2026.