Centrus Energy received a $900 million award from the Department of Energy.
One analyst sees downside to Centrus Energy stock.
Conservative investors will find Centrus Energy stock a more attractive opportunity to gain exposure to the nuclear energy industry.
Rising higher on each day of trading since the first market session of 2026, Centrus Energy (NYSE: LEU) stock is off to an auspicious start in the new year. Today, however, shares of the uranium enrichment specialist appear poised to end the impressive streak, partly due to an analyst's uninspiring outlook.
As of 1:33 p.m. ET, shares of Centrus Energy are down 10.4%, paring back an earlier slide of 11.6%.
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Maintaining a neutral rating on shares of Centrus Energy, Roth Capital analyst Joseph Reagor hiked his price target to $125 from $117. Although the price target is more optimistic, it still suggests that Centrus Energy stock has room to fall since shares closed at $322.97 yesterday. Based on this closing price, Reagor's price target implies downside of more than 61%.
According to thefly.com, Reagor based his higher price target on the recognition that the company is now better positioned after the Department of Energy has awarded it $900 million to expand its uranium enrichment facility in pursuit of achieving commercial-scale production of high-assay, low-enrichment uranium (HALEU).
Many of the advanced small modular reactors currently in development rely on HAELU as their energy source.
While Reagor sees Centrus Energy stock sliding in the days to come, investors should hardly dismiss the nuclear energy stock. With its capacity for HALEU production -- and the fact that it's currently profitable -- the company provides strong exposure to advanced nuclear reactor stocks, representing a less speculative opportunity to benefit from the current nuclear energy renaissance.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.