NuScale Power Receives Neutral Rating from B of A Securities

NuScale Power (SMR) has received a "Neutral" rating from B of A Securities, with a price target of $36.00. Analysts have varied perspectives on the company's future performance, with some maintaining "Neutral" and "Buy" ratings, while others initiated coverage with "Market Perform" and downgraded the stock to "Neutral". The average target price is $38.43, with a high estimate of $53.00 and a low estimate of $14.00, suggesting a 13.73% upside from the current price of $33.79.

NuScale Power (SMR) has recently been the subject of varying analyst opinions, with BofA Securities initiating coverage on the stock and assigning a "Neutral" rating. The company, valued at $9.7 billion, has shown impressive growth with revenue surging over 300% in the last twelve months [3]. Despite the growth, analysts maintain a cautious stance due to the company's early commercialization stage and lack of binding contracts.

BofA Securities, in its recent report, highlighted NuScale's position as a developer of small modular reactor (SMR) technology. The firm noted that support for nuclear energy has been revitalized by policy changes and increasing demand for reliable power sources. The Department of Energy's $900 million program to accelerate light-water SMR deployment further underscores federal support for proven designs like NuScale's technology [3]. However, BofA Securities maintains a "Neutral" stance due to the company's early stage and the valuation that already incorporates significant future success expectations.

Other analysts have expressed differing views. Some maintain "Neutral" ratings, while others initiated coverage with "Market Perform" and subsequently downgraded the stock to "Neutral." The average target price is $38.43, with a high estimate of $53.00 and a low estimate of $14.00, suggesting a 13.73% upside from the current price of $33.79 [3].

NuScale's strategic positioning in the SMR market, which is projected to grow exponentially, positions it to serve niche but high-growth markets, including remote communities, industrial sites, and AI data centers [2]. The company's recent inclusion in the Solactive Global Uranium & Nuclear Components Total Return Index and its eligibility for the Global X Uranium ETF (URA) further amplify its visibility among institutional investors.

However, risks remain. The company's path to profitability is uncertain, and delays in regulatory approvals or construction could erode investor patience. Additionally, the SMR market is becoming increasingly competitive, with players like NuScale Power and Terrestrial Energy vying for dominance [2].

Investors should consider the company's long-term vision and strategic progress in commercializing its technology. NuScale's ability to secure $209.3 million in net cash from financing activities underscores its access to capital and investor confidence in its long-term vision [2]. The company's recent partnership with the University of Illinois Urbana-Champaign (UIUC) and key regulatory approvals from the U.S. NRC and Canada's CNSC further validate its technological and regulatory momentum [2].

In conclusion, NuScale Power's stock remains a high-risk, high-reward proposition, best suited for investors with a long-term horizon and a conviction in the clean energy transition. The company's strategic positioning and technological advancements position it as a compelling player in the SMR race. However, the uncertainty surrounding its commercialization stage and competitive market dynamics warrant a cautious approach.

References:
[1] https://www.barrons.com/market-data/stocks/smr/research-ratings
[2] https://www.ainvest.com/news/nano-nuclear-energy-q3-2025-earnings-strategic-progress-positioning-smr-revolution-2508/
[3] https://www.investing.com/news/analyst-ratings/bofa-securities-initiates-coverage-on-nuscale-power-stock-with-neutral-rating-93CH-4204191