Bullish: Analysts Just Made A Notable Upgrade To Their NuScale Power Corporation (NYSE:SMR) Forecasts

Shareholders in NuScale Power Corporation (NYSE:SMR) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from NuScale Power's seven analysts is for revenues of US$66m in 2025 which - if met - would reflect a huge 77% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 62% to US$0.40. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$48m and losses of US$0.53 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for NuScale Power

The consensus price target rose 9.2% to US$25.40, with the analysts encouraged by the higher revenue and lower forecast losses for this year.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting NuScale Power's growth to accelerate, with the forecast 77% annualised growth to the end of 2025 ranking favourably alongside historical growth of 46% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NuScale Power to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around NuScale Power's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, NuScale Power could be worth investigating further.

Analysts are clearly in love with NuScale Power at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 3 other risks we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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