RoPower SMR Technology Will Accelerate Manufacturing And Deployment

NuScale Power's analyst price target has risen to $42.30, reflecting increased confidence driven by a major 6GW SMR capacity collaboration with TVA/ENTRA1, upwardly revised deployment and revenue assumptions, and positive sector tailwinds, though ongoing execution risks and valuation concerns remain.

Analyst Commentary

• NuScale secured the largest ever U.S. small modular reactor (SMR) capacity commitment through a collaboration with the Tennessee Valley Authority and ENTRA1 Energy for up to 6GW, validating its technology and providing significant commercial momentum.
• Bullish analysts raised price targets based on increased confidence in long-term module deployments, the commercial potential of the TVA/ENTRA1 partnership, and upward revisions to deployment and revenue estimates.
• Bearish analysts remain cautious, citing the early stage of commercialization, absence of binding contracts, and significant execution risks relative to the stock’s already high valuation.
• The competitive landscape is intensifying, with key questions surrounding whether SMRs can achieve cost competitiveness and if NuScale can transition credibility from design approvals to firm customer demand.
• Positive sector-wide structural and policy shifts favor nuclear energy, but uncertainties over project execution, scaling supply chains, and future customer traction continue to temper more bullish sentiment.

What's in the News

• NuScale Power is supporting ENTRA1 Energy’s agreement with the Tennessee Valley Authority (TVA) to deploy up to 6 GW of NuScale SMR capacity across seven states, marking the largest SMR deployment program in U.S. history and strengthening U.S. energy security.
• NuScale filed a $500 million at-the-market follow-on equity offering of Class A common stock.
• GSE Solutions and NuScale developed a hydrogen fuel cell generation and storage plant simulation model for dynamic evaluation and optimization of integrated energy systems, positioning NuScale as the first SMR company to integrate hydrogen production into its control room simulator.
• Paragon Energy Solutions entered a strategic agreement with NuScale to supply its CoreVision Neutron Monitoring System and Highly Integrated Protection System (HIPS) for future SMR deployments, enhancing instrumentation and control safety.
• NuScale launched research programs focused on an integrated energy system for clean water and hydrogen production, including a novel method to use desalination brine as industrial feedstock and deploying advanced simulation for large-scale hydrogen production.

Valuation Changes

Summary of Valuation Changes for NuScale Power

• The Consensus Analyst Price Target has risen slightly from $40.73 to $42.30.
• The Future P/E for NuScale Power has significantly fallen from 196.67x to 162.92x.
• The Consensus Revenue Growth forecasts for NuScale Power has risen from 104.1% per annum to 112.2% per annum.