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Investing.com -- Asian nuclear power stocks are gaining momentum as global energy security concerns drive renewed interest in nuclear energy, according to recent analysis from Bernstein.
The research firm has identified two standout companies positioned to capitalize on the nuclear renaissance, particularly in the small modular reactor (SMR) segment that promises to revolutionize nuclear power deployment.
These companies offer investors exposure to different aspects of the nuclear value chain, from manufacturing to fuel supply.
Bernstein’s top pick in the sector, Doosan Enerbility stands out for its strong manufacturing expertise in both conventional nuclear and SMR equipment.
The company aims to achieve production capacity of 20 SMR units annually by the end of the decade, starting with 12 units in 2025. Its strategic partnerships with leading SMR developers form the foundation of its growth strategy.
The company has secured key manufacturing agreements with major SMR developers:
- NuScale: Currently manufacturing 12 SMRs (77MW each), with some destined for Romania
- X-energy: Partnership targeting 5GW deployment by 2039, including supplying Amazon’s data centers
- TerraPower: Providing core barrel, guard vessel, and internal supports for the Natrium reactor
Bernstein sees significant upside potential in Doosan’s order book and revenue forecasts. The company’s current backlog includes a $2.7 billion contract for the Czech Republic nuclear plant, which likely understates the ultimate contract value.
Additionally, gas turbine production capacity could exceed current guidance, with potential to scale from six to twelve units annually over time.
Analysts project revenue to reach KRW14 trillion by 2030, representing an 8% CAGR from 2024 levels. This forecast exceeds the company’s own target of KRW11.3 trillion for 2029.
With a strategic shift toward higher-margin segments like nuclear equipment and gas turbines, operating profit margins are expected to rise from 3% in 2024 to approximately 9% by 2027.
Doosan Enerbility has received new coverage from several analysts. Nomura and HSBC initiated the company with Buy ratings, while JPMorgan started its coverage with a Neutral rating.
Bernstein also favors Cameco as the Western fuel-cycle champion best positioned to benefit from a U.S. nuclear resurgence. The company offers several compelling investment attributes:
- Strategic stake in next-generation laser enrichment (GLE), which could become a protected, high-return profit center if the U.S. prioritizes domestic enrichment capacity
- Expanded business model through Westinghouse ownership, extending beyond uranium mining into recurring reactor services and fuel services
- Strong portfolio of high-quality, low-cost tier-one uranium assets
- Disciplined management team generating healthy free cash flow
- Potential upside from future nuclear reactor development contracts, including both conventional reactors and SMRs
In recent developments, Cameco has garnered new Buy and Outperform ratings from analysts at Goldman Sachs and CLSA, respectively.
The company is also positioned to benefit from recent U.S. government signals about plans to increase the national strategic uranium stockpile.
As nuclear power gains renewed attention globally, these two companies represent different approaches to capitalizing on the industry’s growth trajectory.
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