NuScale Power Faces Nuclear Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12h ago
0mins
Source: Fool
- Technological Potential: NuScale Power's nuclear technology aims to address significant challenges faced by large nuclear power plants, and while it has yet to achieve its first reactor sale, the potential market for its small modular reactors (SMRs) could lead to a transformative shift in the nuclear industry.
- Collaborative Opportunities: The partnership with Fluor and RoPower presents NuScale with a chance for its first sale, as RoPower plans to link six SMRs together; however, the final investment decision has been postponed to late 2026 or early 2027, which will be crucial for validating the technology's feasibility.
- Market Outlook: The reduced costs and enhanced safety of small modular reactors allow for deployment closer to population centers, addressing the demand for reliable power, particularly in high-energy sectors like data centers, potentially providing NuScale with long-term growth opportunities.
- Cautious Investment: Despite the exciting future prospects, investors may want to wait until NuScale secures its first sale and proves its technology's effectiveness to mitigate risks associated with investing in a company that may not be profitable in the near term.
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: 19.200
Low
18.50
Averages
32.77
High
60.00
Current: 19.200
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.
