Mirion Technologies (MIR) is positioned to benefit from growth in nuclear power, though Morgan Stanley said in a Friday research note that the Street is already well-calibrated for that optimism and current valuation reflects much of the upside.

The brokerage said Mirion offers attractive secular exposure to nuclear and medical end markets, supported by shifting public sentiment toward nuclear energy and rising power demand from artificial intelligence data centers.

Morgan Stanley said the most tangible opportunity for Mirion is tied to the nuclear replacement market rather than new greenfield projects, with the number of units requiring major replacement expected to increase by about 7% in the coming years, creating a meaningful growth tailwind.

Aging reactor fleets and consistently high operating intensity are driving higher demand for upgrades, maintenance, and replacement, which account for about 80% of the company's nuclear-related revenue.

Morgan Stanley initiated coverage of Mirion Technologies with an equal-weight rating and a $29 price target.

Shares of Mirion Technologies were down 3.6% in recent trading.

Price: 25.73, Change: -0.97, Percent Change: -3.62