NuScale Power (SMR – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on March 3. Analyst Neil Kalton from Wells Fargo maintained a Sell rating on the stock and has a $4.50 price target.
Neil Kalton has given his Sell rating due to a combination of factors that highlight challenges for NuScale Power. Despite entering 2025 with a stronger financial position, including significant cash reserves from warrant redemptions and equity issuances, the company still faces difficulties in securing committed customers. This lack of customer commitment raises concerns about the company’s ability to achieve its commercialization goals.
Additionally, while there is growing interest in nuclear power driven by trends such as data center demand and manufacturing reshoring, NuScale faces intense competition from both established players and new entrants in the nuclear technology space. Kalton’s skepticism about NuScale’s ability to successfully commercialize its technology, or to do so in a manner that justifies its current stock valuation, underpins his Sell rating.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SMR in relation to earlier this year.