UBS Downgrades NuScale Power Amid Concerns Over Execution Risks
Wall Street has raised concerns about NuScale Power (SMR), a small modular reactor developer, as UBS downgraded its stock to Sell from Neutral and cut the price target by 40%. The downgrade reflects worries over execution risks, including delays in construction timelines and lack of client commitments. Despite regulatory progress—NuScale received NRC approval for its US460 design—the company faces challenges turning reactor technology into commercial projects. UBS forecasts only one NuScale project will break ground by 2028 and estimates a $700 million cash burn from 2026 to 2028. While the U.S. government is investing heavily in nuclear energy, with plans for up to 200 gigawatts of new capacity by 2050, NuScale must overcome commercial hurdles to succeed. NuScale has strong liquidity but faces pressure from competitors who are already moving into construction phases.
Tickers: $SMR
Topics: nuclear energy NuScale Power price target cut small modular reactors (SMR) UBS analysis