NuScale Power Struggles to Secure First SMR Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 19 2024
0mins
NuScale Power Corp's stock fell 5.05% as it crossed below the 5-day SMA, reflecting ongoing challenges in securing its first small modular reactor (SMR) contract.
Despite discussions with South Korea regarding investment and reactor projects, NuScale has yet to finalize any contracts, indicating a struggle to commercialize its technology. The company has regulatory approval for its SMR technology, but ongoing negotiations for contracts in Romania and partnerships with ENTRA1 Energy and the Tennessee Valley Authority have not materialized into actual sales. Investors are advised to be cautious given the high-risk status and ongoing losses.
The implications of these challenges are significant for NuScale, as it must establish a sustainable business model to attract investment and achieve profitability. The current market conditions, including rising electricity demands, highlight the potential for growth, but without securing contracts, the company's future remains uncertain.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 11.740
Low
18.50
Averages
32.77
High
60.00
Current: 11.740
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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