NuScale Power Corporation (NYSE:SMR) is included among the 15 Best Nuclear Power Stocks to Buy According to Wall Street Analysts.
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NuScale Power Corporation (NYSE:SMR) provides small modular reactor technology solutions. Its groundbreaking NuScale Power Module is a 12-module plant that can produce up to 924 MWe of carbon-free energy.
On May 22, BofA reinstated coverage of NuScale Power Corporation (NYSE:SMR) with a ‘Neutral’ rating and assigned the stock a price target of $12.
The analyst firm highlighted NuScale’s status as the only company with a U.S. Nuclear Regulatory Commission Standard Design Approval, granting it a significant first-mover regulatory advantage. Moreover, its use of conventional low-enrich uranium fuel also provides “a clear credibility lead versus peers”.
However, BofA noted that NuScale’s revenues remain tied to services and its first reactor is not expected to generate power until the early 2030s. Moreover, the company’s progress in converting agreements into binding contracts has been slower than initially expected.
Moreover, SMR deployment requires significant upfront capital and a robust balance sheet. While NuSale’s peers have been increasingly successful in securing hyperscaler-supported agreements, the company remains underexposed and vulnerable to a near-term funding risk.
While we acknowledge the potential of SMR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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