Nuscale Power (SMR) PT Lowered to $20 at UBS

UBS analyst Jon Windham lowered the price target on Nuscale Power (NYSE: SMR) to $20.00 (from $38.00) while maintaining a Neutral rating.

The analyst comments "We reduce our PT to $20 from $38, previously, based on 16x 2028E EV/cash EBITDA discounted 1.25 years at 10% (30x 2028E EV/cash EBITDA discounted 1.5 years at 10%, previously). The reduction in our multiple reflects several near-term headwinds for SMR shares, including the Fluor stake monetization, risk of new equity to fund milestone payments to ENTRA1, and delayed FID for the RoPower project. Our 16x multiple is in- line with SMR's broader nuclear-exposed peer group, which trade at an average 16x 2028 EV/EBITDA. Our previous 30x multiple was in-line with the average 2026 EV/ EBITDA of SMR's broader nuclear-exposed peers. We now benchmark to 2028 EV/ EBITDA given delays in achieving FID at the RoPower project and the long-dated nature of nuclear reactor build timelines. Given the early-stage nature of SMR's business model, the timing and magnitude of future revenue has a wide distribution of potential outcomes, in our view."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Cantor Fitzgerald Reiterates Overweight Rating on Applied Materials (AMAT)
• Full Circle Lithium closes $5.14M private placement