NuScale Power Rated Among Top Nuclear Stocks by Analysts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 56 minutes ago
0mins
Source: Yahoo Finance
- Analyst Coverage Reinstated: On May 22, BofA reinstated coverage of NuScale Power Corporation (NYSE:SMR) with a 'Neutral' rating and a price target of $12, indicating a cautious outlook on its market performance.
- Significant Technical Advantage: NuScale is the only company with U.S. Nuclear Regulatory Commission Standard Design Approval, providing a regulatory edge that enhances its competitive position in the small modular reactor technology sector.
- Revenue Constraints: Despite the significant potential of NuScale's technology, its revenues remain heavily tied to services, with the first reactor not expected to generate power until the early 2030s, limiting its short-term financial performance.
- Funding Risks Present: The deployment of SMR requires substantial upfront capital, and NuScale's slower progress in securing funding agreements compared to peers poses a near-term funding risk that could impact its market standing.
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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: 12.190
Low
18.50
Averages
32.77
High
60.00
Current: 12.190
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.
NuScale Power Faces Cash Challenges Amid SMR Projects
- Unique Market Position: NuScale Power stands as the only nuclear company in the U.S. with an NRC-approved small modular reactor (SMR) design, maintaining a significant market position despite cash challenges, which could play a crucial role in the future nuclear energy landscape.
- Slow Project Progress: The company is collaborating with a Romanian utility to replace a former coal site with a 462-megawatt power plant and plans to deploy 6 gigawatts of SMR technology in Tennessee through ENTRA1, but delays in project completion until after 2030 hinder revenue growth potential.
- Poor Financial Health: With first-quarter revenue at only $565,000 and an operating loss of $57 million, NuScale's market value of $4.5 billion seems unreasonable despite having around $1 billion in liquidity, prompting investors to exercise caution.
- Investor Confidence Lacking: Despite rising nuclear energy demand, NuScale's stock has plummeted 65% from last year and failed to make it onto The Motley Fool's list of top stocks, reflecting market concerns about its future performance and potentially leading investors to adopt a wait-and-see approach.
See More
NuScale Power Rated Among Top Nuclear Stocks by Analysts
- Analyst Coverage Reinstated: On May 22, BofA reinstated coverage of NuScale Power Corporation (NYSE:SMR) with a 'Neutral' rating and a price target of $12, indicating a cautious outlook on its market performance.
- Significant Technical Advantage: NuScale is the only company with U.S. Nuclear Regulatory Commission Standard Design Approval, providing a regulatory edge that enhances its competitive position in the small modular reactor technology sector.
- Revenue Constraints: Despite the significant potential of NuScale's technology, its revenues remain heavily tied to services, with the first reactor not expected to generate power until the early 2030s, limiting its short-term financial performance.
- Funding Risks Present: The deployment of SMR requires substantial upfront capital, and NuScale's slower progress in securing funding agreements compared to peers poses a near-term funding risk that could impact its market standing.
See More
NuScale Power: The Future of Small Modular Reactors
- Market Outlook: NuScale Power has a market capitalization of approximately $4.5 billion, with a current share price of $12.64, reflecting a 65% decline from last year, indicating market skepticism about its future profitability despite being the only nuclear reactor developer in the U.S. with an NRC-approved SMR design.
- Project Development Progress: The company is collaborating with a Romanian utility to replace a former coal site with a 462-megawatt power plant, and is expected to deploy 6 gigawatts of SMR technology for the Tennessee Valley Authority by 2030, although these projects have yet to generate revenue.
- Financial Overview: NuScale reported first-quarter revenue of approximately $565,000 and an operating loss of $57 million; despite having around $1 billion in liquidity, the lack of revenue makes its market valuation seem unreasonable, leading investors to adopt a cautious stance.
- Competitive Landscape: While NuScale holds a first-mover advantage over competitors like Oklo and Bloom Energy in small modular reactor development, the absence of significant sales raises concerns about investor confidence in its future growth potential.
See More
Emerging Competitors in the Nuclear Energy Sector
- Market Opportunity: Bank of America estimates the nuclear energy market could be worth $10 trillion, with Oklo and NuScale Power driving a resurgence in nuclear technology expected to yield significant growth over the coming decades.
- Business Model Differences: Oklo focuses on providing reliable power to data centers through power purchase agreements, while NuScale partners with ENTRA1 to sell its small modular reactor technology, offering global market opportunities despite a more complex model.
- Client Appeal: Oklo's direct approach allows it to meet data center demands more rapidly, having established significant partnerships with clients like Equinix, Switch, and Meta Platforms, whereas NuScale has yet to secure major deals with large data centers.
- Regulatory Risk Considerations: While Oklo's business model is more appealing, it lacks NRC approval for its reactor designs, whereas NuScale can leverage partners to manage the complexities of nuclear projects, providing greater regulatory certainty.
See More
Oklo and NuScale Design Small Nuclear Reactors
- Significant Market Opportunity: Oklo and NuScale are developing small nuclear reactors, expected to drive growth in the nuclear sector, with Bank of America estimating this market opportunity at $10 trillion, indicating potential returns for decades to come.
- Differing Business Models: Oklo plans to sell electricity directly to customers through power purchase agreements, while NuScale partners with ENTRA1 to sell its reactor technology; although NuScale's model is more complex, it provides access to the global market.
- Alignment with Client Needs: Oklo's model is particularly suited for industrial clients like data centers that seek clean, reliable power without the complexities of owning and operating a power plant, making Oklo more attractive in the market.
- Notable Project Potential: NuScale's partnership with ENTRA1 has initiated a 6GW SMR project, which, if successful, would become the largest SMR deployment in the U.S., further solidifying its position in the nuclear energy market.
See More
NuScale Power Shares Plunge 62% Amid Capital Raise and Revenue Decline
- Stock Performance Decline: NuScale Power's shares have plummeted over 62% in the past year, dropping from a peak of $57.42 to the current price of $12.19, reflecting a pessimistic market sentiment, although this presents a buying opportunity for patient investors.
- Capital Raising Initiative: The company plans to sell up to $500 million in stock to raise capital, a common move for growth companies, yet it has raised concerns about shareholder dilution, further impacting market confidence.
- Revenue Decrease: NuScale reported projected revenue of $31.5 million for 2025, down from $37 million in 2024, indicating challenges in revenue growth, despite maintaining a leading position in the small modular reactor sector.
- Design Approval Advantage: Unlike its peers, NuScale is the only developer of small modular reactors that has received design approvals from the U.S. Nuclear Regulatory Commission (NRC), providing a critical gateway to commercial operations, especially as data centers increasingly seek efficient power solutions amid rising demands.
See More
NuScale Power Faces Cash Challenges Amid SMR Projects
- Unique Market Position: NuScale Power stands as the only nuclear company in the U.S. with an NRC-approved small modular reactor (SMR) design, maintaining a significant market position despite cash challenges, which could play a crucial role in the future nuclear energy landscape.
- Slow Project Progress: The company is collaborating with a Romanian utility to replace a former coal site with a 462-megawatt power plant and plans to deploy 6 gigawatts of SMR technology in Tennessee through ENTRA1, but delays in project completion until after 2030 hinder revenue growth potential.
- Poor Financial Health: With first-quarter revenue at only $565,000 and an operating loss of $57 million, NuScale's market value of $4.5 billion seems unreasonable despite having around $1 billion in liquidity, prompting investors to exercise caution.
- Investor Confidence Lacking: Despite rising nuclear energy demand, NuScale's stock has plummeted 65% from last year and failed to make it onto The Motley Fool's list of top stocks, reflecting market concerns about its future performance and potentially leading investors to adopt a wait-and-see approach.
See More
NuScale Power Rated Among Top Nuclear Stocks by Analysts
- Analyst Coverage Reinstated: On May 22, BofA reinstated coverage of NuScale Power Corporation (NYSE:SMR) with a 'Neutral' rating and a price target of $12, indicating a cautious outlook on its market performance.
- Significant Technical Advantage: NuScale is the only company with U.S. Nuclear Regulatory Commission Standard Design Approval, providing a regulatory edge that enhances its competitive position in the small modular reactor technology sector.
- Revenue Constraints: Despite the significant potential of NuScale's technology, its revenues remain heavily tied to services, with the first reactor not expected to generate power until the early 2030s, limiting its short-term financial performance.
- Funding Risks Present: The deployment of SMR requires substantial upfront capital, and NuScale's slower progress in securing funding agreements compared to peers poses a near-term funding risk that could impact its market standing.
See More
NuScale Power: The Future of Small Modular Reactors
- Market Outlook: NuScale Power has a market capitalization of approximately $4.5 billion, with a current share price of $12.64, reflecting a 65% decline from last year, indicating market skepticism about its future profitability despite being the only nuclear reactor developer in the U.S. with an NRC-approved SMR design.
- Project Development Progress: The company is collaborating with a Romanian utility to replace a former coal site with a 462-megawatt power plant, and is expected to deploy 6 gigawatts of SMR technology for the Tennessee Valley Authority by 2030, although these projects have yet to generate revenue.
- Financial Overview: NuScale reported first-quarter revenue of approximately $565,000 and an operating loss of $57 million; despite having around $1 billion in liquidity, the lack of revenue makes its market valuation seem unreasonable, leading investors to adopt a cautious stance.
- Competitive Landscape: While NuScale holds a first-mover advantage over competitors like Oklo and Bloom Energy in small modular reactor development, the absence of significant sales raises concerns about investor confidence in its future growth potential.
See More
Emerging Competitors in the Nuclear Energy Sector
- Market Opportunity: Bank of America estimates the nuclear energy market could be worth $10 trillion, with Oklo and NuScale Power driving a resurgence in nuclear technology expected to yield significant growth over the coming decades.
- Business Model Differences: Oklo focuses on providing reliable power to data centers through power purchase agreements, while NuScale partners with ENTRA1 to sell its small modular reactor technology, offering global market opportunities despite a more complex model.
- Client Appeal: Oklo's direct approach allows it to meet data center demands more rapidly, having established significant partnerships with clients like Equinix, Switch, and Meta Platforms, whereas NuScale has yet to secure major deals with large data centers.
- Regulatory Risk Considerations: While Oklo's business model is more appealing, it lacks NRC approval for its reactor designs, whereas NuScale can leverage partners to manage the complexities of nuclear projects, providing greater regulatory certainty.
See More
Oklo and NuScale Design Small Nuclear Reactors
- Significant Market Opportunity: Oklo and NuScale are developing small nuclear reactors, expected to drive growth in the nuclear sector, with Bank of America estimating this market opportunity at $10 trillion, indicating potential returns for decades to come.
- Differing Business Models: Oklo plans to sell electricity directly to customers through power purchase agreements, while NuScale partners with ENTRA1 to sell its reactor technology; although NuScale's model is more complex, it provides access to the global market.
- Alignment with Client Needs: Oklo's model is particularly suited for industrial clients like data centers that seek clean, reliable power without the complexities of owning and operating a power plant, making Oklo more attractive in the market.
- Notable Project Potential: NuScale's partnership with ENTRA1 has initiated a 6GW SMR project, which, if successful, would become the largest SMR deployment in the U.S., further solidifying its position in the nuclear energy market.
See More
NuScale Power Shares Plunge 62% Amid Capital Raise and Revenue Decline
- Stock Performance Decline: NuScale Power's shares have plummeted over 62% in the past year, dropping from a peak of $57.42 to the current price of $12.19, reflecting a pessimistic market sentiment, although this presents a buying opportunity for patient investors.
- Capital Raising Initiative: The company plans to sell up to $500 million in stock to raise capital, a common move for growth companies, yet it has raised concerns about shareholder dilution, further impacting market confidence.
- Revenue Decrease: NuScale reported projected revenue of $31.5 million for 2025, down from $37 million in 2024, indicating challenges in revenue growth, despite maintaining a leading position in the small modular reactor sector.
- Design Approval Advantage: Unlike its peers, NuScale is the only developer of small modular reactors that has received design approvals from the U.S. Nuclear Regulatory Commission (NRC), providing a critical gateway to commercial operations, especially as data centers increasingly seek efficient power solutions amid rising demands.
See More
