NuScale Power Aims to Disrupt Nuclear Energy with SMRs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Market Potential: NuScale Power aims to disrupt the nuclear energy sector by selling small modular reactors (SMRs), which can be combined in groups of up to 12 modules to provide a total output of 924 megawatts, catering to the continuous power needs of data centers and industrial sites.
- Enhanced Production Efficiency: Unlike traditional nuclear power plants, NuScale's SMRs are designed to be assembled in factories and shipped to project sites, significantly reducing construction time and costs, thereby facilitating easier deployment of nuclear power in areas lacking infrastructure and enhancing market competitiveness.
- Favorable Policy Support: With the U.S. government aiming to quadruple nuclear capacity in the coming decades, NuScale benefits from policy tailwinds; although it has yet to operate commercially, the surge in electricity demand presents multiple opportunities for its technology to prove itself.
- Market Risks and Opportunities: Despite NuScale's market capitalization of $6 billion, the lack of commercial revenue raises concerns; however, if it can successfully sell SMRs at scale, today's valuation could appear more reasonable, although execution risks remain.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SMR is 32.77 USD with a low forecast of 18.50 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 18.920
Low
18.50
Averages
32.77
High
60.00
Current: 18.920
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate 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 governments, political subdivisions, state-owned enterprises, investor-owned utilities and other technology and industrial companies, both in domestic and international markets.
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.
NuScale Power Advances Small Modular Reactor Development
- Significant Market Potential: NuScale Power boasts a market capitalization of $6 billion, and while it currently has minimal revenue, successfully scaling SMR sales could render its valuation more justifiable, indicating strong future growth prospects.
- Technological Innovation Advantage: As the first company to receive Nuclear Regulatory Commission certification for its SMR design, NuScale's reactors can be factory-assembled and shipped to project sites, significantly reducing construction time and costs, thereby enhancing the flexibility of nuclear energy deployment.
- Policy Support Context: With the U.S. government aiming to quadruple nuclear capacity in the coming decades, NuScale benefits from favorable policies, especially as electricity demand surges, particularly from data centers that require continuous power.
- Competitive Market Landscape: Despite NuScale's first-mover advantage in the small modular reactor space, competitors like Oklo and Nano Nuclear Energy are vying for market share, necessitating that NuScale quickly achieve commercial operations to secure its market position.
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NuScale Power Aims to Disrupt Nuclear Energy with SMRs
- Significant Market Potential: NuScale Power aims to disrupt the nuclear energy sector by selling small modular reactors (SMRs), which can be combined in groups of up to 12 modules to provide a total output of 924 megawatts, catering to the continuous power needs of data centers and industrial sites.
- Enhanced Production Efficiency: Unlike traditional nuclear power plants, NuScale's SMRs are designed to be assembled in factories and shipped to project sites, significantly reducing construction time and costs, thereby facilitating easier deployment of nuclear power in areas lacking infrastructure and enhancing market competitiveness.
- Favorable Policy Support: With the U.S. government aiming to quadruple nuclear capacity in the coming decades, NuScale benefits from policy tailwinds; although it has yet to operate commercially, the surge in electricity demand presents multiple opportunities for its technology to prove itself.
- Market Risks and Opportunities: Despite NuScale's market capitalization of $6 billion, the lack of commercial revenue raises concerns; however, if it can successfully sell SMRs at scale, today's valuation could appear more reasonable, although execution risks remain.
Continue Reading