BofA Securities maintains Neutral on NuScale Power stock amid TVA deal

Investing.com - BofA Securities has reiterated its Neutral rating and $38.00 price target on NuScale Power (NYSE:SMR) following the company’s announcement of a major collaboration agreement.

NuScale Power revealed that Tennessee Valley Authority (TVA) and ENTRA1 Energy will collaborate to deploy up to 6 GW of new nuclear capacity, representing approximately 72 NuScale Power Modules at 77 MWe each.

The agreement, described as the largest small modular reactor commitment by a U.S. utility, could power about 4.5 million homes or support approximately 60 hyperscale data centers, with ENTRA1 financing, owning, and operating the plants while TVA pursues long-term power purchase agreements.

BofA Securities analyst Dimple Gosai noted that the first deployment is targeted by 2030, with TVA’s Clinch River site identified as a likely candidate, but emphasized that further binding commercial steps would be critical for a more constructive view on the stock.

The research firm highlighted concerns about NuScale’s ramping investments, the need for firm commercial agreements, potential increased equity capital needs via the ATM agreement, and noted that NuScale shareholder Fluor will become eligible to monetize its stake next week.

In other recent news, Fluor Corporation reported its second-quarter 2025 financial results, which fell short of Wall Street expectations. The company’s earnings per share (EPS) came in at $0.43, missing the forecasted $0.56, while revenue reached $4 billion, below the anticipated $4.55 billion. In a legal development, Fluor acknowledged a Supreme Court of Queensland decision favoring Santos in a dispute over the Gladstone LNG project in Australia. This case has been ongoing since 2016 and involves cost recovery efforts related to a project completed by Fluor in 2015. Meanwhile, DA Davidson has reiterated its Buy rating and $50.00 price target on Fluor, despite describing the company’s recent quarterly performance as "noisy" with slower bookings momentum. The firm maintained its positive outlook on the stock. These recent developments highlight a challenging period for Fluor, with legal and financial hurdles affecting its current standing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.