Wells downgrades Nuscale Power to Underweight on misguided enthusiasm

Wells Fargo downgraded Nuscale Power (SMR) to Underweight from Equal Weight with a price target of $4.50, down from $7.50. The analyst believes the stock’s 207% rally year-to-date is connected to positive developments for nuclear owners Constellation Energy (CEG) and Talen Energy (TLNE). However, the firm thinks investor enthusiasm for Nuscale Power is misguided. The company has not secured customers for its Voygr product and a poor financial condition with cash on hand only providing one year of runway, the analyst tells investors in a research note. Wells believes Nuscale’s financial position poses challenges in securing new customers and that its Voygr technology is currently not cost competitive with other sources of generation.