NuScale Power (NYSE:SMR) stock is up a staggering 29% today after Canaccord Genuity analysts raised its price target to $8 per share from $4.25. Indeed, with today’s gains, NuScale’s rally only continues from its promising fourth-quarter earnings report last week.
NuScale has enjoyed plenty of Wall Street love following its earnings report last week. Despite the nuclear reactor company missing earnings per share (EPS) estimates, reporting an EPS loss of -25 cents per share, compared to analyst estimates of an EPS loss of -14 cents per share. It also made several notable encouraging announcements.
NuScale’s Announcements
This includes the fact that its Standard Design Approval application for an uprated 77 MWe small module nuclear reactor was accepted for review by the U.S. Nuclear Regulatory Commission (NRC). This makes NuScale the first small module reactor (SMR) to receive design approval and certification and have Long Lead Materials in production. John Hopkins, president and Chief Executive of NuScale had this to say about its 2023 progress:
“Over the course of 2023, we made significant progress towards commercializing our SMR technology, including continued activities to ensure readiness for manufacturing of our first NuScale Power Modules, building traction amongst data centers and further developing industrial applications for SMRs, such as process heat, hydrogen, and ammonia production.”
NuScale’s SMR project in Romania is expected to receive a preliminary decision next year. That project has the financial backing of the United States government to the tune of $4 billion.
SMR Stock Soars on Lofty New Price Target
According to Canaccord analysts, NuScale’s unique position within the SMR space and rising demand for power in the U.S. has put NuScale in a strong place for potential growth.
Canaccord’s George Gianarikas stipulates that the company will require an investment of around $450 million before managing to produce positive free cash flow by 2031. However he is encouraged that new capital will be raised at $6 per share from previous estimates of $1.75 per share, resulting in far less dilution.
Per Gianarikas, SMRs “promise to solve many of nuclear power’s historical cost and safety issues and significantly capitalize on future nuclear momentum.”
With today’s gains, SMR stock is up a whopping 63% over the past five trading sessions. This has brought its price to about $10 per share.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
