Roth says Centrus Energy DOE award total a ‘bit misleading’

Roth MKM analyst Joe Reagor keeps a Neutral rating on Centrus Energy (LEU) after the Department of Energy said it would give an award for high-assay low-enriched uranium enrichment to the company as well as three others. While the contract total is up to $2.7B, Roth cautions investors that the total is a “bit misleading” and likely to be a cost share structure, the analyst tells investors in a research note. Roth believes Centrus could take a large one-time charge non-cash charge for its share of the cost. The contracts are a positive step towards positioning Centrus from a broker to an enrichment company, but will take multiple years, contends the firm.