NuScale Power (SMR) Supports TVA Partnership For Landmark 6 GW Clean Energy Deployment

NuScale Power (SMR) recently announced a landmark agreement to deploy up to 6 gigawatts of its Small Modular Reactor capacity in cooperation with the Tennessee Valley Authority, marking the largest SMR deployment in U.S. history. This event likely contributed to the company's share price move of 19% over the last quarter by emphasizing its technological leadership and advancing its U.S. energy strategy. During this period, other market factors, including the rise of the Nasdaq by 1% amid robust demand in tech stocks, may have also influenced the broader market sentiment, potentially adding weight to NuScale's positive performance.

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The recent agreement to deploy up to six gigawatts of SMR capacity with the Tennessee Valley Authority reinforces NuScale Power's technological leadership and positions it favorably for revenue growth and accelerated market entry. Over the past year, the company's shares have seen a substantial increase of very large due to the potential transformative impact of these partnerships. This contrasts with the broader US market and electrical industry performance, where SMR notably outperformed by delivering 390.65% total returns over the year, compared to the US Electrical industry's 49.3% and the US market's 17.5% returns over the same period.

NuScale's recent announcements could further boost revenue and earnings forecasts. Revenue is expected to grow at 48% annually, while the company remains unprofitable over the next three years. The share price movement by 19% in the last quarter, influenced partly by these strategic developments, places it near the consensus analyst price target of US$40.66, but still reflects a 9.20% discount to the target. As NuScale advances with its projects, sustained demand for SMR technology could affirm the long-term growth trajectory anticipated by analysts, despite current earnings challenges.

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