Flowserve has ‘underappreciated nuclear exposure,’ says BofA

Following reports that Constellation Energy’s (CEG) Three Mile Island nuclear power plant would reopen to power Microsoft’s (MSFT) data centers, BofA analyst Andrew Obin estimates Flowserve’s (FLS) nuclear exposure is “the most meaningful in our coverage,” contributing about 3%-4% in total sales. A meaningful inflection in nuclear demand is not embedded in the company’s long-term growth algorithm for mid-single digit growth, suggesting potential upside to 2026 and 2027 forecasts, according to the analyst, who adds that the profitability of nuclear is above the company’s Power average. BofA maintains a Buy rating and $60 price target on Flowserve as it contends that the company’s nuclear exposure is “underappreciated.”