NuScale Power Stock Drops After UBS Downgrade
NuScale Power (NYSE: SMR) saw its stock fall by over 13% on Friday after Swiss bank UBS downgraded the company from neutral to sell, setting a $6 price target. The downgrade came as analyst Jon Windham revised his valuation downward due to concerns about NuScale's long build timeline and lack of firm customer commitments compared to competitors who are nearing construction readiness. UBS estimates that NuScale will face significant negative free cash flow between 2026 and 2028, potentially consuming up to $700 million or even as much as $1 billion in the worst-case scenario. This could drain nearly all of its current cash reserves before revenue is expected to rise significantly by 2028. Windham noted that while NuScale may begin a single construction project by 2028, it must first overcome financial hurdles and avoid running out of money ahead of anticipated growth.
Tickers: $SMR
Topics: free cash flow nuclear energy NuScale Power UBS downgrade