Nuscale Power's Strategic Position in the Small Modular Reactor (SMR) Market: RBC's Sector Perform Rating and $35 Price Target as a Catalyst for Re-evaluation by Growth-Oriented Investors

NuScale Power (NYSE: SMR) has emerged as a pivotal player in the small modular reactor (SMR) sector, leveraging regulatory milestones, strategic partnerships, and a robust liquidity position to solidify its leadership. Recent analyst activity, including Northland Capital Markets' $35 price target and “Market Perform” ratingNuScale Power Q2 2025 slides: revenue dips amid continued investment in SMR technology^[2], has reignited interest in the stock. While RBC Capital Markets has not explicitly issued a report, the broader analyst consensus—averaging $36.20—suggests a growing confidence in NuScale's long-term potentialNuScale Power Reports Second Quarter 2025 Results^[1]. This article evaluates whether the stock offers a compelling entry point for growth-oriented investors navigating the energy transition.

Regulatory Progress: A Cornerstone of Competitive Advantage

NuScale's first-mover status in the SMR market is underscored by its achievement of U.S. Nuclear Regulatory Commission (NRC) design approval for its 77 MWe reactor designNuScale Power Reports Second Quarter 2025 Results^[1]. This milestone, secured ahead of schedule in Q2 2025, positions NuScale to address a wider range of applications, from grid-scale power to industrial heat. The company's partnership with Fluor on the RoPower Doicești project in Romania further validates its technology's scalabilityNuScale Power Reports Second Quarter 2025 Results^[1]. Regulatory tailwinds, including the Inflation Reduction Act and the ADVANCE Act, are expected to accelerate SMR deployment by streamlining approvals and increasing fundingNuScale Power Q2 2025 slides: revenue dips amid continued investment in SMR technology^[2]. For investors, these developments reduce the risk of regulatory delays that have historically plagued nuclear projects.

Financial Resilience Amid Modest Revenue Growth

NuScale ended Q2 2025 with $489.9 million in cash and equivalentsNuScale Power Reports Second Quarter 2025 Results^[1], a critical buffer as it invests in engineering and licensing for its Romanian project. While revenue dipped to $8.1 million in Q2 2025 from $13.4 million in the prior quarterNuScale Power Q2 2025 slides: revenue dips amid continued investment in SMR technology^[2], the company's focus on long-term contracts—such as engineering fees for RoPower—signals a strategic shift toward capitalizing on future deployments. However, high operating expenses and the absence of commercial orders remain risksNuScale Q2 Earnings Show Progress, But Risks Still High^[3]. Investors must weigh NuScale's financial flexibility against its need to convert interest into firm contracts, a challenge shared by peers like Nano Nuclear Energy (NNE)NuScale Power vs. Nano Nuclear^[4].

Market Potential and Competitive Positioning

NuScale's SMR technology is uniquely positioned to serve diverse markets, including data centers, hydrogen production, and desalinationNuScale Power Q2 2025 slides: revenue dips amid continued investment in SMR technology^[2]. This versatility broadens its addressable market beyond traditional utilities, a factor highlighted by UBS in its $38 price targetNuScale Q2 Earnings Show Progress, But Risks Still High^[3]. The company's exclusive partnership with ENTRA1 Energy to commercialize its SMR technology further strengthens its value propositionNuScale Power Reports Second Quarter 2025 Results^[1]. While Nano Nuclear's microreactors target niche applications, NuScale's regulatory approvals and broader market reach give it a distinct edgeNuScale Power vs. Nano Nuclear^[4]. Analysts project that the SMR sector could grow to $100 billion by 2040, with NuScale capturing a significant share if deployment timelines align with current expectationsNuScale Power Reports Second Quarter 2025 Results^[1].

Execution Risks and the Path to Commercialization

Despite its strengths, NuScale faces execution risks. The absence of firm commercial orders and high R&D costs could pressure margins if deployment timelines slipNuScale Q2 Earnings Show Progress, But Risks Still High^[3]. Additionally, the company's reliance on a single major project (RoPower) introduces concentration risk. Competitors like Nano Nuclear are also advancing their microreactor designs, which could capture market share in portable energy applicationsNuScale Power vs. Nano Nuclear^[4]. For NuScale, the key to unlocking value lies in securing additional projects and demonstrating cost efficiency at scale.

Investment Implications: A Catalyst for Re-evaluation

Northland Capital Markets' $35 price target and “Market Perform” ratingNuScale Power Q2 2025 slides: revenue dips amid continued investment in SMR technology^[2] reflect a balanced view of NuScale's potential and risks. While RBC Capital Markets has not issued a specific target, the broader analyst consensus—ranging from $20 to $60—indicates a spectrum of expectationsNuScale Power Reports Second Quarter 2025 Results^[1]. For growth-oriented investors, NuScale's current valuation (trading near $34 as of September 2025) offers a compelling entry point if the company can secure additional contracts and maintain its regulatory momentum. However, patience is required: the SMR sector is still in its infancy, and commercialization timelines remain uncertain.

Conclusion

NuScale Power's strategic position in the SMR market is underpinned by regulatory leadership, financial resilience, and a versatile technology platform. While execution risks persist, the company's progress in Romania and expanding market applications justify a re-evaluation by investors positioned for the energy transition. The $35 price target from Northland Capital Markets—and the broader analyst optimism—serves as a catalyst for those willing to navigate the sector's long-term horizon. For now, NuScale remains a high-conviction play, with its success hinging on its ability to convert regulatory momentum into commercial deployments.