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Investing.com - BofA Securities initiated coverage on Nuscale Power (NYSE:SMR) with a Neutral rating and a price target of $36.00, representing a potential upside of 6.5%. The company, currently valued at $9.7 billion, has shown impressive growth with revenue surging over 300% in the last twelve months, according to InvestingPro data.
The research firm’s analysis highlights Nuscale’s position as a developer of small modular reactor nuclear technology (SMR), noting that support for nuclear energy has been revitalized by policy changes and increasing demand for reliable power sources.
According to BofA Securities, U.S. electricity consumption is projected to grow 25% by 2030 and 78% by 2050, primarily driven by data centers and artificial intelligence applications, based on ICF data.
The Department of Energy has launched a $900 million program to accelerate light-water SMR deployment, which BofA Securities interprets as strong federal support for proven designs like Nuscale’s technology.
Despite these positive factors, BofA Securities maintains a Neutral stance due to Nuscale’s early commercialization stage, lack of binding contracts, and a valuation that already incorporates significant future success expectations.
In other recent news, NuScale Power Corporation reported its second-quarter 2025 earnings, which showed a miss on earnings per share (EPS) expectations and a significant revenue shortfall. The company’s EPS was -$0.13, falling short of the forecasted -$0.11, representing an 18.18% negative surprise. Revenue reached $8.1 million, which was below the anticipated $11.89 million by 31.88%. Additionally, NuScale Power announced a $500 million at-the-market stock offering program in collaboration with several financial institutions, including UBS Securities LLC and TD Securities (USA) LLC. This program allows the company to sell shares of its Class A common stock at its discretion. In analyst updates, UBS raised its price target for NuScale Power to $38 from $34, maintaining a Neutral rating. The firm also revised its cash EBITDA estimates for 2025 to 2027, reflecting modest changes in operating expenses and revenue timing. These developments provide investors with a snapshot of the company’s recent financial activities and market expectations.
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