NuScale Power Faces High Risks as It Awaits First SMR Sale
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Technological Potential: NuScale Power's small modular reactor (SMR) technology promises enhanced safety and speed through factory construction, yet the absence of a first sale undermines market confidence and poses significant risks.
- Customer Prospects: A Romanian power company is considering up to six NuScale SMRs, but a final decision is not expected until late 2026 or early 2027, which could diminish NuScale's market appeal due to delays.
- Revenue Sources: NuScale generates some revenue by providing consulting services to RoPower and Fluor, but the lack of formal customers challenges its business model and impacts long-term growth potential.
- Investment Risks: Fluor's plan to fully exit its investment in NuScale by 2026 may exert ongoing pressure on the stock price, prompting investors to carefully weigh risks against potential rewards.
Analyst Views on FLR
Wall Street analysts forecast FLR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLR is 49.25 USD with a low forecast of 40.00 USD and a high forecast of 57.00 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.
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 43.440
Low
40.00
Averages
49.25
High
57.00
Current: 43.440
Low
40.00
Averages
49.25
High
57.00
About FLR
Fluor Corporation is a holding company that provides engineering, procurement, construction (EPC), fabrication and modularization, and project management services. The Company's segments include Energy Solutions, Urban Solutions and Mission Solutions. The Energy Solutions segment provides EPC services for traditional oil and gas markets, including the production and fuels, chemicals, LNG and power markets. The segment serves these industries with comprehensive project life-cycle services. The Urban Solutions segment provides EPC and project management services to the advanced technologies and manufacturing, life sciences, mining and metals, infrastructure industries and professional staffing services. The Mission Solutions segment provides high-end technical solutions to the United States and other governments. These include, among others, the DOE, the Department of Defense, FEMA and intelligence agencies. The segment also provides services to commercial nuclear clients.
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.
