UBS Downgrades NuScale Power Stock to 'Sell' Amid Concerns Over Market Position
UBS has downgraded its rating for NuScale Power Corporation (SMR) from 'Neutral' to 'Sell,' citing concerns over the company's slowing momentum in small modular reactor development and a lack of firm customer contracts. Despite being the only SMR developer with U.S. Nuclear Regulatory Commission approval, NuScale faces increasing competition as rivals advance toward construction. The downgrade followed weak Q2 financial results where revenue dropped sharply from $8.8 million to just $0.08 million, though earnings per share met expectations at a loss of $0.13. NuScale's stock has been highly volatile over the past year and remains speculative due to its pre-revenue status and capital-intensive nature. The company holds strong liquidity with approximately $1.2 billion in cash but continues to report negative free cash flow, driven by high R&D costs and supply chain development expenses. UBS forecasts significant cash burn through 2028 and expects only one NuScale project will break ground before then.
Tickers: $SMR
Topics: bearish outlook NuScale Power SMR (Small Modular Reactors) UBS