NuScale Power stock downgraded by BTIG on valuation after recent rally

Published 25/06/2025, 10:50
© Reuters

Investing.com - BTIG downgraded NuScale Power (NYSE:SMR) from Buy to Neutral on Wednesday, citing the stock’s significant rally since mid-May.

The nuclear technology company’s shares have more than doubled since its first-quarter earnings report in mid-May, when management guided to booking its first U.S. order by the end of 2025, compared to the S&P 500’s approximately 4% gain during the same period.

BTIG noted several positive catalysts that have already played out for NuScale, including the Nuclear Regulatory Commission’s Standard Design Approval awarded at the end of May and continued U.S. congressional support for nuclear power development tied to the Inflation Reduction Act.

Additional positive developments for the company included favorable election results in Romania supporting Western partnerships, management’s positive outlook on incremental order flow, President Trump’s executive orders supporting the nuclear industry, and the World Bank lifting its nuclear funding ban.

While BTIG believes NuScale remains well-positioned for the eventual build-out of small modular reactor deployments both domestically and internationally, particularly in Europe and Korea, the firm is now waiting for the company’s backlog to materialize and seeking more clarity around project economics before becoming more constructive on the stock.

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