BTIG lifts Nuscale Power target to $22, maintains Buy rating

On Tuesday, BTIG analyst Gregory Lewis (JO:LEWJ) adjusted the price target for Nuscale Power (NYSE:SMR), increasing it to $22 from the previous $20, while reiterating a Buy rating on the company’s stock. With a current market capitalization of $4.01 billion, Nuscale trades at $28.85 per share. According to InvestingPro data, analyst targets range from $30 to $58, suggesting potential upside. The revision followed Nuscale’s first-quarter earnings report, which revealed revenues of approximately $13 million. This figure surpassed the consensus estimate of around $3 million but showed a sequential decline of about 65%.

Nuscale Power, which focuses on small modular reactor (SMR) technology, saw its shares rise approximately 2% after the market closed on the day of the earnings report. InvestingPro analysis shows the stock typically exhibits high price volatility, with a price-to-book ratio of 15.99x. The company’s management is anticipating the Standard Design Approval (SDA) for its approximately 77MW reactor design from the Nuclear Regulatory Commission (NRC) by July. Achieving SDA is considered a pivotal milestone that is expected to help secure U.S. orders, with management targeting a firm order by the end of 2025.

The company is preparing for these anticipated orders by investing in the finalization of its design and strengthening its supply chain. Moreover, Nuscale has already ordered long-lead items for 12 modules. Management conveyed that around 25% of the module costs could be incurred within the first year of development, which could lead to positive operating cash flow for the company by 2026.

In his analysis, Lewis highlighted Nuscale Power’s position as an early entrant in the SMR industry and noted the importance of the upcoming regulatory approval. He also mentioned the company’s conventional-fueled reactor design as a key factor that could contribute to securing a firm order in the United States, with potential deployments as early as 2030. The increased price target to $22 reflects BTIG’s confidence in Nuscale’s growth trajectory and its prospects within the nuclear power sector. Based on InvestingPro’s Fair Value analysis, the stock appears overvalued at current levels. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report covering Nuscale’s financial health, valuation metrics, and growth prospects.

In other recent news, Oklo Inc. has been in the spotlight following several significant developments. The company announced the resignation of Sam Altman as Chairman of the Board, a move that has raised concerns among investors regarding the company’s future leadership and strategic direction. Altman’s departure was not due to any disagreements with Oklo, and Jacob DeWitte, the CEO and co-founder, will assume the role of Chairman. Meanwhile, Oklo’s focus on advanced nuclear technology has garnered attention, with H.C. Wainwright initiating coverage with a Buy rating and a price target of $55.00, highlighting the company’s innovative use of recycled fuel in small modular reactors. Additionally, reports have emerged about potential U.S. government executive orders to boost nuclear power plant construction, which could benefit Oklo and other nuclear companies. These developments come as Oklo continues to explore strategic partnerships, including those in the artificial intelligence sector, to deliver scalable clean energy solutions. Investors are closely monitoring Oklo’s progress, especially as the company advances its nuclear fuel recycling technologies and prepares for the operational launch of its Aurora powerhouse.

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