Cantor Fitzgerald on Monday reduced its 12-month price target for NuScale Power (NYSE:SMR) to $20 from $55, while leaving its Overweight rating intact. The decision follows a series of developments the firm said are creating near-term headwinds for the company.
As of the firm’s note, NuScale shares were trading at $12.99. Cantor highlighted the stock’s recent weakness: it has fallen 64% over the past six months and sits 78% below its 52-week high of $57.42.
The analyst team cited several specific factors driving the reassessment of the price objective. First, Fluor Corp is actively selling shares, which Cantor expects to apply downward pressure. Second, the firm identified the potential for additional supply-side pressure from NuScale’s existing at-the-market (ATM) equity program. Finally, the RoPower announcement has shifted the firm’s internal timeline for the company’s progress, delaying expected milestones and outcomes.
"We are lowering our price target related to near-term headwinds: Fluor Corp (FLR, NC) actively selling shares, potential pressure from its existing ATM program, and the RoPower announcement pushing back our expected timeline. That said, we remain optimistic about SMR’s commercialization path and potential long-term success."
Despite trimming its target, Cantor Fitzgerald retained a constructive view on NuScale’s longer-term prospects, keeping the Overweight rating in place. The firm indicated that its optimism about NuScale’s ability to commercialize its small modular reactor technology remains intact, even as the near-term outlook has grown more uncertain.
Balance-sheet metrics cited in associated market data show NuScale carrying more cash than debt, a relative strength for a company still investing in development and commercialization. However, the company remains unprofitable on an operating basis, with a negative EBITDA of $132 million reported in the data referenced by the firm.
NuScale’s situation sits within a broader, rapidly evolving industry context. The company has announced a technical collaboration with Oak Ridge National Laboratory to evaluate artificial intelligence-guided nuclear fuel management across multiple reactors. That effort is funded by the U.S. Department of Energy’s Gateway for Accelerated Innovation in Nuclear (GAIN) program and is targeted at optimizing fuel management for a 12-module reactor configuration.
On the analyst front, several other firms have recently adjusted their views on NuScale. TD Cowen downgraded the stock from Buy to Hold, pointing to risks tied to the company’s Romanian project. That downgrade arrived in advance of a key shareholder meeting at Nuclearelectrica, where investors will vote on a Final Investment Decision for a Small Modular Reactor project in Doicesti.
Meanwhile, Texas Capital Securities initiated coverage with a Buy rating, highlighting NuScale as the first and only small modular reactor design approved by the U.S. Nuclear Regulatory Commission. Separately, BofA Securities moved its rating from Underperform to Neutral and lowered its price target to $28.00 from $34.00, an adjustment the bank said reflects valuation following a substantial correction in the share price.
Market sentiment for nuclear energy names has also been influenced by broader political commentary. NuScale and other nuclear stocks drew renewed interest after remarks supportive of nuclear power from U.S. President Donald Trump at the World Economic Forum in Davos, an element Cantor and others flagged as part of the current industry backdrop.
The combination of active selling by a major shareholder, possible dilution pressure from equity programs, timeline slippage tied to project announcements, and varied analyst actions has produced a fluid trading environment for NuScale. Cantor Fitzgerald’s lowered target captures that near-term caution while stopping short of abandoning a favorable long-term thesis for the company’s commercialization potential.
Data point: The firm’s note references a negative EBITDA of $132 million and a cash position that exceeds total debt as reported in the market data cited.