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NuScale Power: Strong Regulatory Position but High Execution Risk Warrants Neutral Hold Rating

NuScale Power: Strong Regulatory Position but High Execution Risk Warrants Neutral Hold Rating

NuScale Power (SMR) has received a new Hold rating, initiated by HSBC analyst, Samantha Hoh.

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Samantha Hoh has given his Hold rating due to a combination of factors related to NuScale’s strong regulatory position but meaningful execution risk. NuScale benefits from dual U.S. Nuclear Regulatory Commission approvals for its 50 MW and 77 MW modules, which improves bankability and supports potential demand from U.S. and international customers, including AI-driven data center loads, yet its asset‑light, licensing‑focused model leaves project timing heavily dependent on customers’ decisions.

At the same time, NuScale’s first major projects in Romania and via ENTRA1/TVA illustrate both growth potential and funding challenges, as phased development and possible milestone contributions may require additional capital and raise G&A expenses. Hoh’s DCF‑based target price of USD13.00, below the street consensus and framed by a very wide bull‑bear range, reflects high uncertainty around FOAK deployment, long-dated revenue ramp assumptions, and significant financial and execution risks, justifying a neutral Hold stance rather than a more decisive Buy or Sell.

In another report released on April 10, RBC Capital also maintained a Hold rating on the stock with a $14.00 price target.

SMR’s price has also changed dramatically for the past six months – from $34.720 to $13.570, which is a -60.92% drop .

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