Jefferies Reiterates Hold Rating on USEC Inc. (USEC)

Jefferies & Company is out with a research report this morning, where it reiterates its Hold rating on USEC Inc. (NYSE: USEC); it has a $5.00 price target on the stock. The Jefferies analysts cited that company’s recent earnings report, which beat the consensus; the company said it sees the full year EPS at breakeven. The analysts also noted that USEC submitted the update of its loan guarantee application in late July. (USEC is reapplying for a $2 billion Department of Energy federal budget loan for Front End Nuclear Fuel facilities.) The DOE should “recommence due diligence and then provide a conditional commitment, likely in 2H10 after which financial closing should take place which we expect in 1H11.” As for valuation, they remarked, “Our $5 PT is based on our DCF model, discounted to reflect risks to the completion of the ACP.”