NuScale Power downgraded to Underperform at BofA on valuation

As previously reported, BofA analyst Dimple Gosai downgraded NuScale Power (SMR) to Underperform from Neutral with a price target of $34, down from $38. Valuation now embeds deployment ramps and discount rates the firm views as “unrealistic at this stage” of small modular reactor adoption, the analyst tells investors. While the firm remains positive on the long-term nuclear theme, current valuations “leave little room for error and the near-term risk/reward skews negative,” the analyst argues. In addition, cycle markers suggest the AI trade may be entering later stages, the analyst added.