Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS raised its price target on NuScale Power (NYSE:SMR) to $38.00 from $34.00 while maintaining a Neutral rating following the company’s second-quarter 2025 results released on August 7. The stock, currently trading at $39.35, has delivered an impressive 119% return year-to-date, according to InvestingPro data.
The firm revised its cash EBITDA estimates for 2025/26/27 to $(112)/40/216 million from $(106)/40/210 million previously, reflecting modest changes in operating expenses and revenue timing in 2025.
UBS cited broad policy support for nuclear energy and significant demand for firm power from data center customers as key factors behind the price target increase, which is based on 30x 2028E EV/cash EBITDA discounted 1.5 years at 10%.
The firm remains cautiously optimistic on the outlook for NuScale Power and nuclear companies broadly, given the supportive policy environment, though it noted historical nuclear delays and cost overruns as potential concerns.
UBS analysts emphasized that small modular reactor stocks have been highly volatile, with share prices reflecting broader trends in the nuclear industry, and that the early-stage nature of NuScale’s business model means the timing and magnitude of future revenue has a wide distribution of potential outcomes.
In other recent news, NuScale Power Corp reported its second-quarter 2025 earnings, revealing a miss on both earnings per share (EPS) expectations and revenue forecasts. The company’s EPS was recorded at -$0.13, which was below the anticipated -$0.11, representing an 18.18% negative surprise. Revenue for the quarter reached $8.1 million, falling short of the projected $11.89 million by 31.88%. These results indicate a significant shortfall in expected financial performance for the period. The earnings announcement was followed by a decline in NuScale’s stock in subsequent trading sessions. Investors and analysts are closely monitoring these developments, as they reflect on the company’s financial health and future prospects. Analyst firms may adjust their ratings or forecasts based on these earnings results, although no specific upgrades or downgrades were mentioned in the recent reports.
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