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NuScale Power (NYSE:SMR) -1.8% in Monday’s trading as Citi started coverage of the small modular reactor nuclear technology company with a Neutral rating and $46 price target, seeing risks for the shares after nearly tripling recently from an April low.
NuScale (NYSE:SMR) boasts first-mover advantage in an industry buoyed by rising power demand from data centers and AI, and its unrated and approved 77 MW design, modular technology, supply chain partnerships, relationship with Fluor, and no HALEU dependence position the company ahead of its competition with new contract announcements on the horizon, Citi analyst Vikram Bagri said.
“However, significant execution risks remain while the stock appears to be pricing nearly 50 GW of installs by 2040,” Bagri wrote, while in the near term, a new customer contract could drive the stock higher, but “after the announcement, focus should shift entirely on execution and fundamentals while the competition catches on with regulatory approvals.”