NuScale Power Stock Falls After UBS Downgrade
NuScale Power (NYSE: SMR) stock dropped nearly 13.5% on September 11, 2026, following a downgrade from neutral to sell by analyst Jon Windham at Swiss bank UBS. The firm also cut its price target for the company’s shares to $6 from previously valued at $10. The move reflects concerns over NuScale's long build timeline and lack of customer commitments in an increasingly competitive small modular reactor (SMR) market. UBS estimates that NuScale will burn through approximately $700 million in free cash flow between 2026 and 2028, which could consume up to two-thirds of its current cash reserves. Other analysts suggest the figure might be closer to $1 billion, raising concerns about the company's financial sustainability before it generates significant revenue. Despite these challenges, UBS anticipates potential growth by 2028 with projected revenues rising from around $11 million today to $185 million. However, achieving this without exhausting cash reserves remains a critical hurdle for NuScale.
Topics: free cash flow concerns NuScale Power SMR stock crash UBS downgrade