NuScale Power (NYSE: SMR) is under scrutiny as Bank of America (BofA) resumed coverage with a Neutral rating and a $12 price target, highlighting the company's sluggish customer deal advancement and elevated cash consumption. The stock ended the trading week at $11.40 on Friday, experiencing a volatile period that saw a 6.68% drop on Monday and a 4.01% decline on Tuesday, before recovering over the subsequent three sessions. The Memorial Day market closure on Monday, May 25, means investors will have to wait until Tuesday to act on the new analyst outlook or any weekend developments.
Financial Performance and Operational Challenges
NuScale reported first-quarter results that underscored its financial strain. The company posted a net loss of $46.7 million on revenue of just $565,000, while net cash used in operations reached $314.7 million. CEO John Hopkins emphasized the growing demand for reliable, carbon-free power, but the company has yet to convert its visibility in the small modular reactor (SMR) space into consistent product revenue. NuScale continues to work with the Tennessee Valley Authority on the ENTRA1 project, which aims to deploy up to 6 gigawatts of capacity, and with RoPower in Romania on a six-module plant at a former coal site. However, a securities class action lawsuit related to ENTRA1 adds legal overhang, with lead-plaintiff motions set for advisement on May 26.
Competitive Landscape and Regulatory Edge
BofA analyst Rinny Singh noted that competitor Oklo (OKLO) has a more favorable strategy with its build-own-operate model, citing a recent deal with Meta and other non-binding letters of intent. Oklo received a Buy rating from BofA. Meanwhile, X-Energy (XE), backed by Amazon, raised $1.02 billion in its April IPO and trades under the ticker XE, reflecting strong investor appetite for nuclear stocks tied to major tech customers. NuScale's primary advantage remains its regulatory progress: the U.S. Nuclear Regulatory Commission completed its review of NuScale's US460 Standard Design Approval in May 2025, covering a 462-megawatt light-water SMR design. However, this approval does not guarantee immediate plant construction or revenue generation.
Market Context and Outlook
Broader market conditions remain supportive, with U.S. stocks notching their eighth consecutive weekly gain. The S&P 500 rose 0.9%, the Dow added 2.1%, the Nasdaq gained 0.5%, and the Russell 2000 increased 2.7% for the week. NuScale's annual shareholder meeting is scheduled for May 29 at 4:30 p.m. EDT, making corporate governance the focal point this week rather than new reactor orders. Without significant updates on contracts, financing, or project timelines, the stock may trade based on the company's ability to leverage its regulatory lead into tangible revenue streams.
