Pritchard Capital Initiating Coverage On Nuclear Fuel Cycle Service Providers (ES)

Pritchard Capital is initiating coverage on EnergySolutions, Inc. ES with a Buy rating, and a $6.50 price target. In a note to clients, Pritchard Capital writes, "We initiate coverage of EnergySolutions, Inc. (ES-$4.81) with a ‘Buy’ rating. Previous senior managers may have oversold its license stewardship concept's near-term growth potential, ability to accept international waste and Federal Services opportunities, but not Clive. This one-of-a-kind asset provides disposal for 95% of the low-level radioactive waste from US nuclear power plants. As investors become more comfortable with the new CEO, his revised strategy and increased visibility over the Zion agreement’s earnings contribution, we believe the shares will trade above our price target of $6.50." Shares of EnergySolutions closed at $4.81 yesterday.