Analyst Jon Windham from UBS maintained a Hold rating on NuScale Power and decreased the price target to $20.00 from $38.00.
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Jon Windham’s rating is based on several factors that contribute to a cautious outlook for NuScale Power. The reduction in the price target from $38 to $20 reflects the challenges the company faces, including the monetization of Fluor’s stake, the risk of needing new equity to fund milestone payments, and delays in the final investment decision for the RoPower project. These factors create near-term headwinds for the stock.
Additionally, the adjustment in valuation multiples to align with the broader nuclear-exposed peer group indicates a more conservative approach. The early-stage nature of NuScale’s business model and the wide range of potential outcomes for future revenue further justify the Hold rating. The long timelines associated with nuclear reactor projects add to the uncertainty, making it prudent to maintain a neutral stance until more clarity emerges.
In another report released on November 11, Northland Securities also reiterated a Hold rating on the stock with a $30.00 price target.