NuScale Power's Price Target Boosted to $38 by UBS Amid Nuclear Policy Support

UBS has raised NuScale Power's price target to $38 from $34, citing broad policy support for nuclear energy and significant demand from data centers. The firm maintains a "Neutral" rating and notes historical nuclear delays and cost overruns as potential concerns. NuScale designs and develops small modular reactors for clean energy generation.

UBS has raised NuScale Power Corporation's (NYSE: SMR) price target to $38 from $34, citing broad policy support for nuclear energy and significant demand from data centers. The firm maintains a "Neutral" rating and notes historical nuclear delays and cost overruns as potential concerns. NuScale designs and develops small modular reactors (SMRs) for clean energy generation.

The announcement comes as NuScale Power, currently trading at $38.17 with a market capitalization of $10.87 billion, disclosed that it has entered into a sales agreement with several financial institutions to launch an at-the-market offering program [1]. The company may offer and sell up to $500 million worth of shares, with a par value of $0.0001 per share. Despite recent earnings disappointment, UBS has adjusted its cash EBITDA estimates for the years 2025, 2026, and 2027, reflecting modest changes in operating expenses and revenue timing [1].

The move by UBS reflects a growing interest in nuclear energy as a solution to the escalating energy requirements of modern digital infrastructure. Major data center operator Equinix (EQIX.O) has announced agreements to secure advanced nuclear electricity, including power purchase agreements and a pre-order for microreactors, to fuel its data centers [2]. This strategic shift by Equinix and others in the tech sector highlights a proactive approach to addressing the energy challenge.

NuScale Power's focus on SMRs differentiates it from competitors like NuScale Power and Terrestrial Energy. The company's KRONOS MMR, a microreactor, aims to target U.S./Canada regulatory milestones by 2026, positioning it to benefit from broader trends in the SMR sector [3]. However, NANO's recent appointments of Rick Perry, Seth Berl, and Vice Admiral Charles Leidig to its advisory boards add a layer of credibility, signaling to regulators and investors that NANO is serious about navigating the complex landscape of nuclear energy [3].

In conclusion, UBS's price target raise for NuScale Power reflects a positive outlook on the company's strategic positioning in the SMR sector, driven by policy support and data center demand. However, investors must remain cautious of historical nuclear delays and cost overruns.

References:
[1] https://www.investing.com/news/sec-filings/nuscale-power-announces-500-million-atthemarket-stock-offering-program-93CH-4187643
[2] https://www.oilandgas360.com/data-centers-turn-to-nuclear-for-ai-energy-demands/
[3] https://www.ainvest.com/news/nano-nuclear-energy-strategic-position-clean-energy-transition-evaluating-q3-2025-earnings-catalyst-long-term-creation-small-modular-reactor-smr-sector-2508/