NuScale Power (SMR) has been on a choppy ride lately, with the share price down about 44% over the past month but still up roughly 21% year to date, leaving investors reassessing its long term nuclear story.
See our latest analysis for NuScale Power.
That sharp 30 day share price return of around negative 44% comes after a strong year to date gain and a near doubling three year total shareholder return. This suggests momentum has cooled as investors reassess execution risks around NuScale’s long term nuclear rollout.
If NuScale’s swings have you rethinking concentration in a single name, it could be worth scanning fast growing stocks with high insider ownership for other high conviction growth stories backed by committed insiders.
With shares still up strongly over three years yet trading almost 80 percent below analyst targets, investors face a pivotal question: is NuScale undervalued after the pullback, or already pricing in the next wave of nuclear growth?
With NuScale’s fair value pegged at about $38.35 versus a last close of $21.39, the most followed narrative paints a sizable upside gap.
With an NRC approved SMR technology and the commitment of over $2 billion towards its development and licensing, NuScale is uniquely positioned for immediate commercial deployment compared to competitors focused solely on demonstration plans. This potentially accelerates revenue growth once commercial operations commence.
Read the complete narrative.
Want to see what kind of revenue surge and margin shift could justify that gap, and why the future earnings multiple looks so aggressive? The full narrative unpacks a high speed revenue ramp, a sharp swing from deep losses toward industry style profitability, and a premium valuation normally reserved for market darlings. Curious how those moving parts add up to the projected fair value? Dive in to see the exact growth blueprint behind this call.
Result: Fair Value of $38.35 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent delays in securing firm utility orders and potential dilutive funding needs around ENTRA1 could quickly challenge that bullish fair value case.
Find out about the key risks to this NuScale Power narrative.
While the popular narrative sees NuScale as 44.2% undervalued, our DCF model points the other way, with fair value near $3.17 versus a $21.39 share price. That implies NuScale could be significantly overvalued if lofty growth and margin assumptions fall short. Which future do you believe?