NuScale Power Gains Buy Rating with $23 Target on NRC Approval
On January 28, Texas Capital covered NuScale Power with a Buy rating and $23 target, highlighting its NRC-approved small modular reactor using low-enriched uranium to minimize supply chain risk. Bank of America rated NuScale Neutral with a $28 target, citing a derisked reactor design but warning of near-term dilution.
1. Texas Capital Initiates Coverage
On January 28, Texas Capital initiated coverage of NuScale Power with a Buy rating and set a $23 price target. The analyst emphasized NuScale’s status as the only small modular reactor developer with U.S. Nuclear Regulatory Commission approval and its use of low-enriched uranium to reduce supply chain risk.
2. Bank of America Upgrade
On January 9, Bank of America upgraded NuScale to Neutral from Underperform and assigned a $28 price target. The firm noted the derisked light-water reactor design and first-mover licensing credibility anchored by TVA, but warned of front-loaded dilution tied to ENTRA1 and limited contract visibility.
3. Strategic Deployment Agreement
In the third quarter of 2025, NuScale and its exclusive partner ENTRA1, in collaboration with the Tennessee Valley Authority, agreed on potential deployment of up to six gigawatts of new nuclear capacity using NuScale’s SMR technology.
4. Technology and Capacity
NuScale’s Power Module is a light-water small modular reactor capable of generating 77 megawatts per unit. The design leverages conventional low-enriched uranium fuel, positioning the company as a more advanced and lower-risk public play in the SMR market.