Shares of uranium enrichment company USEC Inc. rose Tuesday after an analyst raised his earnings estimates on the company, the only one that enriches the commodity in the U.S.
Jefferies & Co. Inc. analyst Laurence Alexander said in a client note that he expected the company to post full-year 2008 earnings per share of 25 cents, up from his previous estimate of 20 cents.
Analysts polled by Thomson Financial expect, on average, full year earnings per share of 30 cents.
He also raised his 2009 earnings per share estimate to 65 cents from 50 cents. Analysts expect earnings per share for 2009 of 70 cents.
"Rising uranium ... prices and elevated energy prices provide an attractive backdrop for operational improvements at USEC, particularly given conservative Street expectations on competitor behavior and project execution," Alexander wrote.
The analyst has an $11 price target and a "Buy" rating.
Other analysts have positive outlooks for USEC. Natixis Bleichroeder Inc. analyst Mark Manley has a $10 price target and a "Buy" rating on the stock.
USEC shares rose 10 cents, or 2 percent, to $5.12 in afternoon trading.
The company supplies low-enriched uranium for commercial nuclear power plants worldwide. It also performs contract work for the U.S. Department of Energy and its contractors.
Terms & Conditions
RSS Headlines
Fool UK