NuScale Power Stock Plummets 75% Amid Customer Acquisition Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Stock Plunge: NuScale Power's stock has fallen from a peak of $57 to approximately $14, representing a 75% decline, which reflects market concerns about its future prospects, particularly amid fears of an AI bubble.
- Performance Loss: The company reported a larger-than-expected net loss of $532 million in its most recent quarter, and while it holds about $754 million in cash and equivalents, approximately $475 million of that came from selling 13.2 million shares, indicating financial pressure.
- Customer Acquisition Challenges: Despite being the only U.S. reactor developer with Nuclear Regulatory Commission design certification for a small modular reactor, NuScale has yet to secure its first major deal, and the absence of customers has heavily impacted its valuation.
- Share Dilution Risk: In December, shareholders approved increasing the number of authorized shares from 332 million to 662 million, which, while not immediately resulting in new shares being issued, provides the company with flexibility to raise capital if needed, thereby increasing potential dilution risks for existing shareholders.
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 36.55 USD with a low forecast of 20.00 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.
12 Analyst Rating
4 Buy
5 Hold
3 Sell
Hold
Current: 14.310
Low
20.00
Averages
36.55
High
60.00
Current: 14.310
Low
20.00
Averages
36.55
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.
