NuScale Power (SMR) reported wider-than-expected losses in 2025. On Thursday, banking giant HSBC (HSBC) kicked off coverage of the U.S. nuclear technology developer with a Hold rating.
Claim 30% Off TipRanks
New trading tool for SMR bulls/bearsThe investment banking firm cited “significant execution and financial risk” due to NuScale Power’s first-of-a-kind technology and a business model that puts it “at the mercy of customers…” However, SMR ended trading on April 22 more than 16% higher to reach $13.57 per share.
For context, NuScale Power develops small modular reactors (SMRs) that use standard light-water reactor technology similar to conventional large nuclear plants. These come in smaller, modular units that can be factory-manufactured and shipped to the site.
NuScale Power Is ‘At the Mercy of Customers’
HSBC analyst Samantha Hoh followed her Hold rating on SMR with a price target of $13, predicting only about 2% upside in the months ahead.
Hoh is bullish on NuScale Power’s standard design approvals from the U.S. Nuclear Regulatory Commission, which she believes “materially de-risks” the company’s push to deploy SMRs globally. However, the analyst is not so confident about NuScale Power’s “capital-light” business model.
The researcher pointed to the U.S. nuclear reactor developer’s modus operandi of not spending heavily to build and own its plants but instead licensing its technology and offering pre- and post-construction services. She believes this puts NuScale Power “at the mercy of customers in terms of the pace of execution.”
Analyst Highlights Oklo’s ‘Owner-Operator’ Business Model
On the contrary, the analyst flagged peer Oklo’s (OKLO) “owner-operator” business model for its SMRs and that the company is “accelerating the integration of power, fuels, and isotope production.” In addition, Hoh commented on NuScale Power’s collaboration with independent energy company ENTRA1 to develop up to six gigawatts of nuclear energy for U.S. public utility Tennessee Valley Authority.
She believes the deal improves NuScale Power’s prospects and should help keep its revenue steady longer term. However, the analyst also contended that the arrangement might require the company to raise more upfront capital to meet higher general and administrative costs.
Is NuScale Power a Good Stock to Buy?
Across Wall Street, analysts’ consensus rating on NuScale Power’s shares remains a Moderate Buy. This is based on five Buys, seven Holds, and one Sell assigned over the past three months.
However, the average SMR price target of $16.70 implies about 31% upside.
