Goldman Sachs maintains Neutral on Nuscale Power, target $27

Published 30/05/2025, 10:34
Goldman Sachs maintains Neutral on Nuscale Power, target $27

On Friday, Goldman Sachs reaffirmed a Neutral rating on Nuscale Power (NYSE:SMR) with a steady price target of $27.00. The stock, which has delivered an impressive 279% return over the past year according to InvestingPro data, currently trades near its Fair Value estimate. The decision followed the U.S. Nuclear Regulatory Commission’s (NRC) release of Nuscale Power’s Final Safety Evaluation Report and Standard Design Approval (SDA) for its US460 design, a 77MW nuclear reactor model, on Thursday, May 29, 2025.

The NRC’s final safety evaluation concluded that Nuscale Power’s design met the necessary requirements for standard design approval. The SDA grants the company’s design the ability to be referenced in future applications for construction permits or operating licenses under part 50 or part 52 applications. With an impressive gross profit margin of 78.4% and a strong balance sheet showing more cash than debt, the company appears well-positioned to pursue its development plans.

Goldman Sachs analysts noted the NRC’s approval as a positive development for Nuscale Power, indicating it as another step forward for the company as it approaches the potential signing of its first commercial customer. The analysts emphasized that, although this is a significant milestone, Nuscale Power must achieve further milestones before its first commercial deployment can take place.

The company’s progress is being closely monitored by industry observers and potential investors as it navigates the regulatory landscape and aims to secure commercial agreements for its nuclear reactor technology. For deeper insights into Nuscale Power’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and 14+ additional ProTips in our detailed Research Report.

The NRC’s approval is part of a broader process that Nuscale Power must undertake to bring its nuclear reactor design to the commercial market. The company’s ability to meet the stringent safety standards set by regulators is crucial for its future success and the adoption of its technology in the energy sector.

In other recent news, NuScale Power Corporation reported a substantial increase in revenue for the first quarter of 2025, reaching $13.4 million compared to $1.4 million in the same quarter the previous year. The company’s earnings per share forecast was -$0.13, which aligned with projections. This surge in revenue is attributed to heightened interest and investment in small modular reactor (SMR) technology. NuScale also received design approval from the U.S. Nuclear Regulatory Commission (NRC) for its enhanced 77-megawatt reactor design, marking the company’s second regulatory approval. This approval allows the design to be used in applications for construction permits or operating licenses, although it does not guarantee the issuance of these permits. Analyst firm Canaccord Genuity raised its price target for NuScale Power to $36, maintaining a Buy rating, while Goldman Sachs set a $24 target with a Neutral rating. These ratings reflect varying levels of optimism regarding NuScale’s future financial performance and growth prospects. The company continues to advance its commercialization efforts, with expectations to have its new reactor design in service by the end of the decade.

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

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