BTIG analyst Gregory Lewis has maintained their neutral stance on SMR stock, giving a Hold rating on August 1.
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Gregory Lewis’s rating is based on several factors influencing NuScale Power’s current market position and future prospects. Despite the recent NRC approval of their reactor design, which is a significant milestone for potential U.S. orders, the company’s financial performance has been underwhelming, with second-quarter revenues falling short of expectations and rising operating costs anticipated in the latter half of the year.
Additionally, the company’s valuation appears high, trading at a substantial multiple of its projected 2025 sales, which raises concerns about pricing, especially for initial projects. Furthermore, the liquidity position remains strong, but the strategic decisions, such as the share exchange agreement with Fluor, indicate potential changes in shareholder dynamics. These elements combined suggest a cautious approach, justifying the Hold rating as investors await more concrete developments in order flow and pricing strategies.
According to TipRanks, Lewis is a 4-star analyst with an average return of 4.7% and a 47.86% success rate. Lewis covers the Energy sector, focusing on stocks such as New Fortress Energy, Borr Drilling, and Valaris.
In another report released on August 1, Northland Securities also maintained a Hold rating on the stock with a $35.00 price target.