NuScale Power (NYSE:SMR) stock is in the news Tuesday after analysts at Wells Fargo cut their price target for the nuclear power plant company’s shares.
This new drop has the firm’s analysts decreasing the price target for SMR stock from $7.50 per share to $4.50 per share. That’s a potential 55.6% downside from its prior closing price. It’s also well below the analysts’ consensus price prediction of $8.65 per share.
To go along with this price target reduction, Wells Fargo downgraded SMR from an “equal weight” rating to an “underweight” rating. That’s below the analysts’ consensus rating of moderate buy based on five opinions.
What’s Behind the Bear Stance on SMR Stock?
The Wells Fargo analysts raise several concerns about NuScale Power in a recent note to clients. The biggest problem is NuScale Power failing to secure any customers for its VOYGR nuclear power plants.
Another concern that Wells Fargo’s analysts raise is the competitiveness of its NuScale Power’s products. The firm notes that it doesn’t know how well the nuclear power plants will fair when compared to other methods of power generation.
SMR stock is down 29.1% as of Tuesday morning with more than 7 million shares traded. That’s already surpassed its daily average trading volume of about 2.9 million shares.
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On the date of publication, William White did not have (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.
