NuScale plunges as Wells Fargo cuts to Sell equivalent on 'misguided' enthusiasm

Model of atom and elementary particles. Physics concept. 3D rendered illustration.

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NuScale Power (NYSE:SMR) -35.4% in Tuesday’s trading, a day after surging to its highest in more than a year, as Wells Fargo downgrades shares to Underweight from Equal Weight with a $4.50 price target, slashed from $7.50, saying investor enthusiasm is “misguided.”

Wells Fargo’s Neil Kalton notes NuScale (SMR) has no secured customers so far for its VOYGR product; is in poor financial condition, with cash on hand providing just a year of runway and posing challenges in securing new customers; VOYGR technology is currently not cost competitive with other sources of generation; and the company’s flagship CFPP project was terminated after more than 10 years of development.

“it is a stretch to think that SMR will be flooded with data center-related orders,” Kalton adds.

The decline offsets Monday’s 29% gain, fueled by expectations the company will be able to raise capital by issuing fewer shares than previously expected.

Roy Walsh

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