Overview
- BofA upgraded NuScale from Underperform to Neutral and lowered its price target to $28 from $34, sending shares up more than 12% in premarket trading.
- The analyst flagged a funding and timing mismatch in the ENTRA1 milestones, higher near-term cash needs, and accelerating dilution as near-term risks.
- NuScale’s stock is down roughly 60% from its post-TVA announcement peak and about 44.5% over six months, though it has rebounded about 20% this week.
- The company recently initiated a $750 million at-the-market equity program, heightening investor focus on potential dilution.
- NuScale holds NRC approval for its 77 MWe SMR and a TVA–ENTRA1 pathway to as much as 6 GW of potential deployments, yet it has not sold or installed any reactors.