NuScale Power Stock (SMR) Up Pre-Market: New Analyst Coverage Posts $36 Target

NuScale Power Corporation (NYSE: SMR), a frontrunner in the small modular reactor (SMR) technology sector, is the subject of scrutiny this morning, as Bank of America initiated coverage with a Neutral rating and a $36 price target. 

SMR is trading 2.69% higher in the pre-market session at $34.70, with BofA's target reflecting a mild upside from here.

The BofA price target suggests a measured outlook on NuScale's potential, acknowledging both the opportunities and challenges inherent in the nuclear energy landscape. This development occurs as the broader market grapples with shifting sentiments towards sustainable energy investments.

NuScale's stock performance has been characterized by significant swings. Earlier last month, the stock soared to a new high at $53.50, and continues to trade up 284% in the past 12 months as confidence in the company's innovative approach to nuclear power continues to grow more bullish.

However, volatility struck on August 1, when the stock declined by 11.7% following Fluor Corporation's announcement to convert 15 million Class B shares into Class A shares, raising concerns about potential stock dilution and sales.

NuScale has been actively pursuing strategic partnerships and international projects. The company is progressing with its RoPower project in Romania, with discussions underway to extend into the detailed design phase. This expansion demonstrates NuScale's efforts to penetrate international markets and establish its technology on a global scale. Moreover, the increased interest in the SMR sector from major tech companies, exemplified by Google's partnership with Kairos Power, highlights the growing appeal of SMRs as a clean energy solution.

As of the first quarter of 2025, NuScale reported $491.4 million in cash and equivalents, bolstered by a share sale that generated $102.4 million in gross proceeds. Revenue saw a significant increase, rising to $13.4 million from $1.4 million in the same quarter of the previous year. Simultaneously, operating expenses decreased to $42.3 million from $44.6 million year-over-year, suggesting improved operational efficiency.

The initiation of coverage by Bank of America, coupled with existing analyst perspectives and NuScale's strategic initiatives, paints a complex picture for markets. The company's ability to navigate regulatory hurdles, secure further funding, and demonstrate the economic viability of its SMR technology will be crucial in determining how things play out from here.