SMR Stock Slides After UBS Downgrade — Analyst Flags Concerns Around Build Timeline, Lack Of Firm Customer Commitments

According to TheFly, UBS cut its price target on SMR stock to $6 from $10, implying a 41% downside potential from the previous close.

• UBS now assumes that only one project will start construction in 2028.
• The firm forecasts about $700 million of cumulative cash burn from 2026 through 2028, per TheFly.
• NuScale ended the second quarter with $1.9 billion in cash, cash equivalents, and short- and long-term investments

NuScale Power Corp. (SMR) stock fell sharply on Friday morning after UBS downgraded the small modular reactor developer to 'Sell' from 'Neutral' and slashed its price target to $6 from $10, according to The Fly.

SMR stock was down more than 8% and ranked among the top trending tickers on Stocktwits.

Why UBS Turned Bearish On SMR Stock

UBS said competitors are moving toward construction while NuScale’s estimated build timeline of more than five years and lack of firm customer commitments “present meaningful challenges.” 

The firm now assumes only one NuScale project begins construction in 2028 and forecasts about $700 million of cumulative cash burn from 2026 through 2028, per TheFly. The $6 target implies roughly 41% downside potential from the previous closing level of $10.21.

Execution Timeline In Spotlight

NuScale's exclusive global strategic partner, ENTRA1 Energy (ENTRA1), continues to advance discussions with the Tennessee Valley Authority (TVA) toward a definitive power purchase agreement for what could be the largest nuclear power deployment program in U.S. history. 

The company is also working with S.N. Nuclearelectrica and RoPower Nuclear to meet the conditions required to advance the proposed Doicești project in Romania, which would deploy six NuScale Power Modules at a former coal plant site. The company describes it as Europe’s most advanced small modular reactor project.

The UBS downgrade puts the spotlight on an existing Wall Street debate over how quickly NuScale can turn project discussions into commercial deployments. 

According to TheFly, B. Riley cut its target on the stock last month to $15 from $19, while maintaining a ‘Buy’ rating, citing progress on the three projects. RBC Capital lowered its target to $10 from $14, saying key projects were progressing, but their timing remained uncertain.

NuScale's $1.9B Liquidity Provides A Cushion

NuScale ended the fiscal second quarter with $1.9 billion in cash, cash equivalents and short- and long-term investments, up from about $1.01 billion at the end of the first quarter. Its investment income rose by $8.5 million year over year in the quarter ended June 30, driven primarily by NuScale’s larger cash balance and higher holdings of cash equivalents and short- and long-term investments.

Meanwhile, retail sentiment around SMR stock remained “bullish” on Stocktwits amid high message volume.

SMR Stock has fallen more than 42% so far this year, underperforming the benchmark S&P 500, which has risen 11.8% during this period.

See Also: Oklo Stock Declines Following Launch Of $1B Share-Sale Program

For updates and corrections, email newsroom[at]stocktwits[dot]com.<