Barclays downgraded NuScale to Underweight and cut the target to $5, citing execution risk and delays. The stock sits near its 52-week low, with revenue of just $75,000 last quarter and looming billions in cash needs, plus dilution concerns from ATM funding. UBS and RBC echoed bearish views, underscoring sector-wide skepticism on SMR progress.
UBS downgraded NuScale Power (SMR) to Sell and cut the price target to $6, highlighting a multi-year build timeline and weak customer commitments. The firm assumes only one project starts construction in 2028, with about $700 million in cash burn through 2028 and a revenue ramp to $924 million by 2030, leaving earnings negative and a notable valuation gap versus market expectations.
NuScale Power reported Q2 results with EPS of -0.13, in line with estimates, but revenue of $75,000 missed the $8.91 million target. R&D spend rose $6.6 million year over year, signaling higher burn ahead. Shares fell about 5.8% after hours to $8.84 as investors weigh near-term visibility against longer-term nuclear demand.
NuScale Power's Q1 earnings reveal a significant revenue miss, further complicated by rising R&D expenses. As the sole SMR provider with NRC-approved technology, the stock's recent decline could attract scrutiny, particularly regarding future profitability.
NuScale Power is seeing stock price declines amid approaching class action lawsuits alleging misleading claims. Additionally, the upcoming earnings report may reflect expected losses, indicating ongoing challenges for the company that could impact investor confidence.
NuScale's stock is experiencing a significant decline even as the Energy sector performs well. This peculiar movement suggests deteriorating investor sentiment and may warrant attention from time-constrained investors looking for trends in SMR's stock performance amidst broader market instability.