Uranium miners surge on lighter than expected Kazakh production forecast (NYSE:CCJ)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 23 2024
0mins
Source: SeekingAlpha
Kazatomprom's Production Guidance: Kazatomprom, the largest uranium producer, announced a reduced production forecast for 2025 of 25K-26.5K tons, down from previous estimates, leading to significant gains in shares of North American uranium producers.
Market Reaction and Future Outlook: Analysts view the lowered guidance as a "miss," prompting increased investment in North American uranium miners due to rising demand and decreasing supply, especially following China's approval of new nuclear reactor permits.
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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: 18.920
Low
18.50
Averages
32.77
High
60.00
Current: 18.920
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.
NuScale Power Faces Nuclear Opportunity
- 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.
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Fluor's Stock Declines Over 20% Amid Mixed Performance in 2025
- Performance Volatility: Fluor experienced dramatic fluctuations in quarterly earnings and cost overruns in 2025, leading to a stock decline of over 20% over the year, reflecting market concerns about its financial performance.
- Tariff Impact: Although Fluor primarily focuses on U.S. projects, the tariff policies in early 2025 resulted in significant increases in material costs, further weakening the company's profitability, particularly as it missed analyst expectations in the fourth quarter.
- Nuclear Investment: Fluor's investment in NuScale Power is seen as a 'hidden gem', with over $600 million invested since 2011, and a $969 million gain from share sales in 2025, highlighting its strategic value in the nuclear energy sector.
- Future Outlook: Despite challenges, Fluor retains a stake in NuScale valued at approximately $2.5 billion, which is expected to provide support and help the company maintain competitiveness amid economic cycles.
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