NuScale Power Downgraded to Sell by UBS
UBS downgraded NuScale Power Corp (NYSE:SMR) from Neutral to Sell on Friday, reducing its price target from $10.00 to $6.00. The downgrade prompted a 4.4% decline in NuScale’s shares during pre‑market trading.
UBS analyst Jon Windham cited the company’s extended build timeline and the absence of firm customer commitments as primary concerns. He noted that competitors are advancing toward construction while NuScale faces significant challenges. Windham now assumes that only one SMR project will commence construction in 2028 and projects cumulative cash burn of approximately $700 million from 2026 through 2028.
Revenue is forecast to increase from $185 million in 2028 to $924 million in 2030, representing a 123% compound annual growth rate. Despite the revenue growth, earnings are expected to remain negative through 2030. UBS estimates the market currently implies $124 million of EBITDA for 2028, whereas its own forecast is $29 million.
The downgrade also reflects worries about NuScale’s estimated five‑plus‑year construction timeline, which could place the firm at a disadvantage relative to peers. UBS warned that project delays, setbacks with the RoPower technology, and limited progress with the Tennessee Valley Authority could widen the gap between market expectations and the company’s more conservative projections. The new $6.00 price target implies roughly a 40% downside from current trading levels.