Texas Capital Securities has initiated research coverage on NuScale Power (NYSE: SMR), assigning a Buy rating and setting a price objective of $23.00. The broker noted that this target represents roughly 20% potential upside versus the then-current share price of $19.20. InvestingPro data cited in the note shows the stock has already rallied strongly year-to-date, posting a 29.85% gain.
In its write-up, Texas Capital highlighted that NuScale is the developer of the first and only small modular reactor that has received approval from the U.S. Nuclear Regulatory Commission. The firm's focus in the report was on NuScale’s 77 MWe integral pressurized water reactor, a design the analyst described as grounded in decades of light water reactor experience and adapted for modular deployment.
The research note explained that NuScale’s reactor modules are engineered to be stackable, allowing plant configurations that range from four to 12 modules. That modular architecture is presented as a core commercial differentiator, enabling scaled deployments tailored to customer needs.
Texas Capital also emphasized fuel considerations. The firm pointed out that NuScale Power Modules operate on conventional low-enriched uranium, which is broadly available today. According to the note, this characteristic reduces supply chain risk compared with competitors that require higher enrichment levels or specialized fuels.
Summarizing the investment case, the report argued that NuScale offers investors differentiated exposure to advanced nuclear development with comparatively lower regulatory, supply chain, and execution risk relative to its publicly traded peers. The firm underscored the company’s attractive gross profit margins and balance sheet position: NuScale reportedly shows gross profit margins of 66.76% and holds more cash than debt.
Despite these strengths, Texas Capital and associated analysis flagged important caveats. InvestingPro data noted that NuScale is not yet profitable, and the research brief highlighted the stock’s high volatility, citing a beta of 2.13. These factors were presented as considerations for investors weighing the upside implied by the new price target against the company’s current financial profile and market behavior.
Other analyst activity in the nuclear sector was also recounted in the note. BofA Securities moved its rating on NuScale from Underperform to Neutral, stating that a sizeable correction in the share price better reflects the company’s ongoing challenges. Separately, UBS reduced its price target for NuScale to $20 from $38 while maintaining a Neutral rating, attributing the revision to project delays and additional financial headwinds.
The briefing also mentioned Oklo, which has drawn attention from multiple firms. Goldman Sachs reiterated a Neutral rating on Oklo with a $106.00 price target and noted the company’s intention to concentrate on its Aurora Powerhouse reactors, with new milestones for Project Pluto expected to be announced soon. William Blair reaffirmed an Outperform rating on Oklo, citing the company’s strong financial position and potential backing from the U.S. Department of Energy.
Finally, the note observed that nuclear energy names overall have attracted investor interest following public endorsement of nuclear power by U.S. President Donald Trump at the World Economic Forum in Davos. The research concluded that market dynamics in the sector remain fluid, as companies such as NuScale Power and Oklo navigate a mix of regulatory milestones, project timelines, and financial considerations.