Analyst Ratings February 20, 2026

Canaccord Genuity Starts Coverage on Terra Innovatum With Buy Rating and $10 Target

Broker bases valuation on long-term DCF to 2050, highlights SOLO micro-modular reactor features and market opportunity

By Derek Hwang NKLR
Canaccord Genuity Starts Coverage on Terra Innovatum With Buy Rating and $10 Target
NKLR

Canaccord Genuity has launched coverage of Terra Innovatum Global (NASDAQ:NKLR) with a Buy rating and a price target of $10. The broker’s valuation rests on a discounted cash flow model that runs to 2050 and assumes a roughly 15% weighted average cost of capital and a roughly 5% terminal growth rate. Canaccord cites growth in nuclear capacity and the company’s SOLO micro-modular reactor design as drivers of long-term demand for clean baseload power, while also noting financing and deployment risks.

Key Points

  • Canaccord Genuity initiated coverage of Terra Innovatum Global (NASDAQ:NKLR) with a Buy rating and a $10 price target based on a DCF to 2050 using ~15% WACC and ~5% terminal growth.
  • The valuation assumes Terra Innovatum will raise approximately $1.2 billion of equity at $4 per share over the coming years and competes with analyst price targets that range from $10 to $25.
  • Canaccord highlights SOLO micro-modular reactor attributes - safety protocols, high-temperature gas-cooled reactor pedigree, factory-assembled construction to lower overnight costs, LEU/HALEU fuel flexibility, and proliferation safeguards - as drivers of an expanded addressable market; these points impact the energy and industrial manufacturing sectors.

Canaccord Genuity has initiated coverage of Terra Innovatum Global (NASDAQ:NKLR) and assigned a Buy rating with a $10.00 price target, according to the firm’s published analysis. The valuation is derived from a discounted cash flow model extending to the year 2050, using assumptions of approximately a 15% weighted average cost of capital and an approximate 5% terminal growth rate.

The analyst team’s modeled price target sits well above the stock’s prevailing market price. Terra Innovatum shares are trading at $4.30, which the report notes is roughly an 80% decline from the company’s 52-week high of $21.91. Canaccord’s published view aligns with a broader analyst sentiment that the name retains optimistic coverage: the report cites a Strong Buy consensus among analysts, with price targets in the coverage universe ranging from $10 to $25.

Key to Canaccord’s valuation is an explicit financing assumption. The analysis assumes Terra Innovatum will raise about $1.2 billion of additional equity capital at $4.00 per share over the coming years. That equity infusion is embedded in the firm’s model and underpins the path to the projected cash flows used in the DCF.


Technology and market opportunity

Canaccord highlights the company’s SOLO micro-modular reactor concept as a potential differentiator in the evolving nuclear sector. The broker emphasizes several attributes of the SOLO design: safety protocols, a proven operational pedigree tied to high-temperature gas-cooled reactor technology, a factory-assembled construction model intended to reduce overnight construction costs, fuel flexibility that includes LEU and HALEU, and built-in proliferation safeguards. Canaccord argues that the combination of these features could unlock a total addressable market that conventional large-scale reactors have been unable to access.

The firm projects that Terra Innovatum stands to benefit from both growth in the absolute volume of nuclear assets and from nuclear’s prospective rise as a percentage of the global energy mix. Canaccord’s comments frame nuclear power as a source of clean, baseload energy with durable long-term demand.


Operational and regulatory developments

Recent corporate developments are cited as supportive to the firm’s view on deployment readiness. Terra Innovatum has secured all critical components for its SOLO micro-modular reactor, which Canaccord says should reduce manufacturing and construction risks. Separately, the company has changed its independent registered public accounting firm, appointing KPMG following the dismissal of MaloneBailey, LLP. The prior auditor had reportedly expressed substantial doubt about the company’s ability to continue as a going concern, although it did not issue any adverse opinions in its audit report.

On the licensing and regulatory front, Canaccord and other brokers referenced continued engagement with the U.S. Nuclear Regulatory Commission. The firm notes that Terra Innovatum has been actively advancing its licensing process, holding more than 10 meetings with the NRC during the last quarter of 2025. Those meetings are described as focused on reactor design, safety philosophy, and deployment readiness. Benchmark reiterated a Buy rating citing the company’s accelerated engagement with the NRC, and H.C. Wainwright also initiated coverage with a Buy recommendation.


Valuation context and profitability

While Canaccord provides the $10 target under its DCF framework, third-party analysis noted in the report presents a more cautious lens. An InvestingPro analysis referenced in the material flags that Terra Innovatum is not yet profitable and currently appears overvalued relative to its assessed Fair Value. Canaccord’s model attempts to capture long-term upside, but the report makes clear that ongoing capital needs and execution milestones are material to whether the valuation can be realized.


Summary of implications

Canaccord’s initiation frames Terra Innovatum as a company with a technology-led path to a sizable addressable market in an evolving nuclear landscape, while also embedding substantial financing and deployment assumptions into its valuation. The firm’s views are echoed by other brokers covering the name, but independent assessments draw attention to profitability and relative valuation questions.

Risks

  • Execution risks tied to first-of-a-kind deployments and the degree to which nth-of-a-kind cost reductions are achievable - these risks affect project development and construction sectors.
  • Regulatory uncertainties, including timely approvals from the Nuclear Regulatory Commission, which influence licensing timelines and the utilities and energy infrastructure sectors.
  • Supply chain constraints for specialized materials such as graphite and helium, which could impact manufacturing, reactor assembly, and broader industrial supply chains.

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