NuScale Power Corp., the only U.S. company with an approved small modular reactor design, has received regulatory approval for a second, larger version. The U.S. Nuclear Regulatory Commission (NRC) on Thursday formally authorized NuScale’s new 77-megawatt reactor, following its 2020 approval of a smaller 60-megawatt model — a milestone for the nuclear industry at the time.
The new approval allows the updated design to be referenced in applications for construction permits or operating licenses under Title 10 of the Code of Federal Regulations (10 CFR) Part 50, or for combined or manufacturing licenses under 10 CFR Part 52.
However, the NRC emphasized that this Standard Design Approval (SDA) does not guarantee future permits or licenses. It also does not constrain the authority of the Commission, the Atomic Safety and Licensing Board, or other presiding officials in proceedings under 10 CFR Part 2 involving applications that cite the SDA.
On Thursday, analysts at Canaccord Genuity raised their price target on NuScale Power Corp. (NYSE: SMR) shares from $26.00 to $36.00, maintaining a Buy rating. The stock, which has surged nearly 299% over the past year according to InvestingPro data, is trading close to its 52-week high of $36.85. The revised target reflects increased confidence in NuScale’s long-term financial prospects, particularly as module deployments are anticipated to begin in 2033 and beyond.
The analysts updated their long-term model to factor in the potential for earlier-than-expected revenue from licensing and services. Despite ongoing risks in its path to commercialization, NuScale’s robust gross profit margins of 78.44% and a strong balance sheet — with more cash than debt — support the bullish outlook.
Canaccord’s valuation is based on a discounted cash flow (DCF) model, using a 12% weighted average cost of capital (WACC) and a 6% terminal growth rate to estimate the present value of future cash flows. Although the stock appears to be trading above its fair value by InvestingPro estimates, analysts project 25% revenue growth in the next fiscal year and express strong optimism for NuScale’s prospects, especially post-2040, assuming successful deployment of its modular reactors.
NuScale Power is a pioneer in small modular reactors (SMRs), which promise safer, more adaptable nuclear energy solutions. Its success could significantly reshape the global energy landscape amid rising demand for clean, reliable power.
In related developments, NuScale reported Q1 2025 revenue of $13.4 million, a substantial increase from $1.4 million a year earlier. Its EPS forecast of -$0.13 met expectations, and operating expenses fell to $42.3 million from $44.6 million. The company also maintains a solid liquidity position with $491.4 million in cash and equivalents.
Separately, Goldman Sachs initiated coverage of NuScale with a Neutral rating and a 12-month price target of $24.00. While acknowledging NuScale’s leadership in the emerging SMR space, Goldman cited caution due to the novelty of the technology and the complexity of the regulatory environment.
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