NuScale Power (NYSE:SMR) Price Target Cut to $3.50 by Analysts at Citigroup

Key Points

• Citigroup cut its NuScale Power price target from $4.00 to $3.50 and maintained a Sell rating, implying about 30% downside from the cited share price.
• Analyst opinions remain mixed: the consensus rating is Hold with an $8.73 average target, though several firms recently lowered their targets.
• NuScale reported quarterly revenue of $0.28 million, far below the $3.66 million estimate and down 96.6% year over year; its loss of $0.11 per share was slightly better than expected.

NuScale Power (NYSE:SMR - Get Free Report) had its price objective decreased by research analysts at Citigroup from $4.00 to $3.50 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a "sell" rating on the stock. Citigroup's price objective suggests a potential downside of 30.10% from the stock's current price.

A number of other brokerages have also issued reports on SMR. Canaccord Genuity Group reduced their price target on NuScale Power from $15.00 to $11.00 and set a "buy" rating for the company in a research report on Friday. Cantor Fitzgerald lowered their price target on NuScale Power from $20.00 to $15.00 and set an "overweight" rating on the stock in a report on Friday. Wedbush began coverage on shares of NuScale Power in a research note on Tuesday. They set an "underperform" rating and a $5.00 price objective on the stock. Truist Financial reduced their price objective on shares of NuScale Power from $10.00 to $8.00 and set a "hold" rating for the company in a report on Thursday, October 22nd. Finally, The Goldman Sachs Group reiterated a "neutral" rating and issued a $4.00 target price on shares of NuScale Power in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $8.73.

NuScale Power Trading Up 14.6%

NYSE:SMR traded up $0.64 during mid-day trading on Friday, hitting $5.01. The stock had a trading volume of 40,642,465 shares, compared to its average volume of 31,532,557. The company has a 50 day simple moving average of $7.54 and a 200-day simple moving average of $10.63. The stock has a market capitalization of $2.15 billion, a price-to-earnings ratio of -1.71 and a beta of 2.42. NuScale Power has a 52 week low of $4.28 and a 52 week high of $32.09.

NuScale Power (NYSE:SMR - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported ($0.11) EPS for the quarter, topping the consensus estimate of ($0.12) by $0.01. NuScale Power had a negative net margin of 3,888.70% and a negative return on equity of 35.59%. The firm had revenue of $0.28 million during the quarter, compared to analysts' expectations of $3.66 million. During the same quarter in the prior year, the firm earned ($1.85) EPS. NuScale Power's quarterly revenue was down 96.6% on a year-over-year basis. As a group, equities research analysts anticipate that NuScale Power will post -0.59 earnings per share for the current year.

Insider Activity at NuScale Power

In related news, CFO Robert Hamady sold 29,880 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $9.39, for a total transaction of $280,573.20. Following the completion of the sale, the chief financial officer directly owned 124,235 shares in the company, valued at approximately $1,166,566.65. This trade represents a 19.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Shinji Fujino sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $8.86, for a total transaction of $177,200.00. Following the sale, the director owned 17,242 shares of the company's stock, valued at $152,764.12. The trade was a 53.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 69,880 shares of company stock worth $615,573 in the last ninety days. Corporate insiders own 1.28% of the company's stock.

Institutional Investors Weigh In On NuScale Power

A number of institutional investors and hedge funds have recently modified their holdings of SMR. Renaissance Technologies LLC acquired a new position in shares of NuScale Power in the 1st quarter valued at $59,141,000. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of NuScale Power in the 3rd quarter worth $12,785,000. Bank of America Corp DE boosted its position in shares of NuScale Power by 33.4% in the 1st quarter. Bank of America Corp DE now owns 2,062,232 shares of the company's stock worth $22,355,000 after purchasing an additional 516,097 shares during the last quarter. Swedbank AB grew its stake in shares of NuScale Power by 36.3% during the first quarter. Swedbank AB now owns 1,502,300 shares of the company's stock worth $16,285,000 after purchasing an additional 400,240 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in shares of NuScale Power during the first quarter worth $4,336,000. 78.37% of the stock is owned by institutional investors and hedge funds.

NuScale Power News Summary

Here are the key news stories impacting NuScale Power this week:

• Positive Sentiment: NuScale said it has moved from reactor development toward physical module manufacturing, with first-article production underway alongside Doosan Enerbility. The company highlighted $1.9 billion in liquidity; negotiations with the Tennessee Valley Authority remain important to securing commercial orders. Article: SMR Q3 Earnings Call Highlights Shift to Module Manufacturing
• Positive Sentiment: A relief rally across nuclear stocks is also providing support, with sector sentiment improving after Oklo reported a narrower-than-expected loss. Article: Nuclear stocks rebound
• Neutral Sentiment: Analyst views remain mixed: Cantor Fitzgerald lowered its target to $15 but kept an Overweight rating, while other firms also reduced their targets. Article: Cantor Fitzgerald price-target update
• Negative Sentiment: Third-quarter revenue was just $0.28 million versus analysts’ $3.66 million estimate, down 96.6% year over year. The $0.11-per-share loss was slightly better than expected, but the revenue shortfall underscores that commercialization has yet to translate into meaningful sales. Article: NuScale Q3 earnings results
• Negative Sentiment: Royal Bank of Canada cut its target from $7 to $5 and assigned a Sector Perform rating, leaving limited implied upside at the cited share price. Article: RBC price-target cut

About NuScale Power

NuScale Power Corporation develops small modular reactor (SMR) technology for producing electricity and other forms of low-carbon energy. The company's core product is the NuScale Power Module, a compact pressurized-water reactor designed to be manufactured in a factory, transported to a site and deployed in scalable configurations.

NuScale markets its technology through the VOYGR power plant platform, which can combine multiple reactor modules to meet the needs of utilities, industrial users and other customers.

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