EUR/USD likely to find a peak near 1.25: UBS
Investing.com - Citi initiated coverage on Nuscale Power (NYSE:SMR) with a neutral rating and a $46.00 price target on Monday. The stock has shown remarkable momentum, delivering a 107% return year-to-date and maintaining impressive gross margins of 78%.
The Wall Street firm cited Nuscale’s first-mover advantage in an industry supported by increasing power demand from data centers and artificial intelligence applications as key factors in its assessment.
Citi highlighted several competitive advantages for Nuscale, including its uprated and approved 77MW design, modular technology, supply chain partnerships, relationship with Fluor (NYSE:FLR), and independence from High-Assay Low-Enriched Uranium (HALEU).
The analyst noted that new contract announcements are on the horizon, which could drive the stock higher in the near term, but cautioned that significant execution risks remain.
According to Citi’s analysis, the current stock price appears to be pricing in nearly 50GW of installations by 2040, and after any new customer contract announcements, focus will likely shift entirely to execution and fundamentals as competition advances with regulatory approvals.
In other recent news, NuScale Power Corporation has announced significant advancements in its research programs, focusing on an integrated energy system aimed at addressing water scarcity and hydrogen production. The company reports that a single NuScale Power Module, when paired with desalination technology, can produce approximately 150 million gallons of clean water daily without carbon emissions. In a separate development, NuScale has opened the largest Energy Exploration Center in the United States in partnership with George Mason University, designed to advance nuclear science and engineering education. This initiative is supported by the Virginia Clean Energy Innovation Bank and features a full-scale simulator of a NuScale SMR control room for hands-on student experience.
Additionally, NuScale Power received a Neutral rating from Goldman Sachs, maintaining a price target of $27.00. This follows the U.S. Nuclear Regulatory Commission’s approval of NuScale’s US460 design, marking a significant milestone for the company. The NRC’s approval allows NuScale’s design to be referenced in future applications for construction permits or operating licenses. These developments come amid broader policy shifts favoring nuclear energy, as a Senate panel has proposed extending tax credits for nuclear power until 2036. This policy change highlights a more favorable regulatory environment for nuclear companies like NuScale Power, potentially influencing investment priorities in the energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.