Goldman Sachs sets Nuscale Power stock target at $24 with neutral rating

Published 19/05/2025, 22:00
Goldman Sachs sets Nuscale Power stock target at $24 with neutral rating

On Monday, Goldman Sachs initiated coverage on Nuscale Power Corp (NYSE:SMR), assigning a Neutral rating to the company’s stock with a 12-month price target of $24.00. The target suggests a minimal downside from the stock’s current market price of $24.52. The stock has shown remarkable momentum, delivering a 283% return over the past year and a 36% gain in the past week alone.

Nuscale Power, recognized for its small modular reactor (SMR) manufacturing capabilities, is positioned by Goldman Sachs as a key contender in the global effort towards decarbonization. The company stands out as the sole owner of an SMR technology in the United States that has submitted a design application to the Nuclear Regulatory Commission (NRC), with an expectation for a final design certification ruling by 2025. According to InvestingPro data, the company maintains strong financial health with a current ratio of 6.23, indicating robust liquidity to fund its development plans.

Goldman Sachs acknowledges the company’s pioneering status in the nuclear SMR manufacturing sector, highlighting its first-mover advantage and a robust project pipeline. Nuscale Power has also established global partnerships that have enabled the commencement of production.

Despite these positive attributes, Goldman Sachs maintains a cautious stance on the stock. The firm cites the novelty of the technology, the intricacies of the licensing process, the yet-to-be-proven business model, and the uncertainty surrounding the company’s financial targets as reasons for their balanced view on the stock’s current valuation.

In other recent news, Nuscale Power Corp reported a significant surge in revenue for the first quarter of 2025, reaching $13.4 million, a substantial increase from $1.4 million in the same quarter the previous year. This revenue figure notably exceeded the forecasted $2.31 million, aligning with the company’s earnings per share (EPS) forecast of -$0.13. Nuscale’s operating expenses decreased to $42.3 million from $44.6 million the previous year, and the company maintains a strong cash position with $491.4 million in cash and equivalents. The company is advancing its 77-megawatt electric design approval, anticipated by July 2025, which is crucial for future deployment. Additionally, Nuscale raised $102.4 million through an ATM program, bolstering its financial standing. Analyst firm TD Cowen noted the company’s aim to secure a firm customer order by the end of 2025, with commercial deployment targeted for 2030/2031. Nuscale is also focusing on the Row Power project in Romania, with a potential final investment decision expected in late 2025 or early 2026. These developments reflect Nuscale’s strategic initiatives and growing market demand for its technology.

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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