Barclays Starts Nuscale Power (SMR) at Equalweight

Barclays initiates coverage on Nuscale Power (NYSE: SMR) with a Equalweight rating and a price target of $45.00.

The analyst comments "Initiating coverage of Oklo Inc. (OKLO) at Overweight and a $146 PT and NuScale Power (SMR) at Equal Weight and a $45 PT: OKLO is a levered way to invest in the SMR theme. As a developer, owner and operator of assets, it looks to build and grow a baseline of cash flows from the facilities that it puts into place from PPA agreements. It currently has 14 GW of non-binding agreements with various customers, such as data centers, military outposts, etc. SMR's role will be more as an OEM and it technically will only have on customer, ENTRA1, who will serve as the exclusive developer who will be commercializing the NuScale SMR Technology. ENTRA1 (private; not covered) will develop, own and operate the assets and also be responsible for securing PPAs. Currently, they have a non-binding agreement with Tennessee Value Authority (TVA) for up to 6 GW. Our current price targets assume targeted run rates of 1GW for OKLO and 2 GW for SMR with a 14% cost of equity. Generally, we think our near-term assumptions have some downside risk (mostly tied to growing pains) and while the out years may be too conservative (especially if economies of scale are achieved), it will be several years before we feel confident in revisiting our assumptions. Ultimately though, if either or both OKLO and SMR are successful in deployment and commercialization, the stocks could have material upside potential from current levels, as it would result in growth well above the run-rates we are currently assuming.

For an analyst ratings summary and ratings history on Nuscale Power click here. For more ratings news on Nuscale Power click here.

Shares of Nuscale Power closed at $38.00 yesterday.

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