SMR Should I Buy
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NuScale Power Corp (SMR) is not a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock is facing significant challenges, including poor financial performance, negative news sentiment, and bearish technical indicators. Additionally, there are no strong proprietary trading signals or positive catalysts to support a buy decision.
The stock is in a bearish trend with moving averages indicating downward momentum (SMA_200 > SMA_20 > SMA_5). The RSI is neutral at 30.144, and the MACD histogram is above 0 but positively contracting, suggesting limited bullish momentum. Key support is at $10.7, and resistance is at $12.465. Pre-market price is down 1.36%, indicating further weakness.
The company remains the only NRC-approved SMR provider and has secured a 6 GW potential deal with TVA. Incremental progress on commercialization projects like RoPower and ENTRA1/TVA is ongoing.
NuScale is facing a class action lawsuit for securities fraud, which has significantly impacted investor confidence. The stock has fallen 80% from its peak, and concerns over financial mismanagement, delayed commercialization, and shareholder dilution persist. Analysts have consistently lowered price targets, citing slow deployment growth and capital needs. Additionally, the nuclear startup Oklo is emerging as a competitor with regulatory approvals and a clear commercialization timeline.
In Q4 2025, revenue dropped by 94.72% YoY to $1.8M, and net income fell by 32.21% YoY to -$50.83M. Gross margin dropped to -3.37, down 103.7% YoY, while EPS improved slightly to -0.8, up 15.94% YoY. Overall, the financials indicate severe challenges in revenue generation and profitability.
Analysts have consistently lowered price targets, with UBS, Citi, and others expressing concerns over capital needs, delays, and cost overruns. The average price target is now significantly below previous levels, with ratings ranging from Neutral to Sell. While some analysts see long-term potential, the near-term outlook is highly negative.
