NuScale Power's Small Modular Reactor Prospects Analyzed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Fool
- Technological Potential: NuScale Power's nuclear technology has yet to achieve sales, despite its small modular reactor (SMR) receiving regulatory approval, indicating future market opportunities, but it remains in the technology validation phase, necessitating investor caution.
- Market Opportunity: The company has a potential sale lined up in Romania, where RoPower could purchase six SMRs to form a large nuclear power plant; however, project decision delays until late 2026 or early 2027 and funding issues remain critical obstacles.
- Production Advantages: The factory-based production model of SMRs will lower costs and enhance consistency, allowing for construction closer to demand centers, making it suitable for high-power-demand locations like data centers, thereby increasing market competitiveness.
- Future Outlook: Although NuScale Power is collaborating with the Tennessee Valley Authority and ENTRA1 Energy to advance in the U.S. market, no final sales have been secured, and future success hinges on the reliability of its technology and widespread market acceptance.
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.
