3 Reasons Wall Street Analysts Remain Bullish on NuScale Power Stock

NuScale Power’s shares have slumped more than 30% so far in 2026 and over 70% in the past twelve months, yet a number of Wall Street analysts remain confident the company can rebound with gains exceeding 100% within the next year. The optimism centers on NuScale’s unique regulatory approval to construct small modular reactors (SMRs) in the United States, a technology that promises faster build times and lower capital costs than traditional nuclear plants and has attracted interest from AI firms needing rapid, large‑scale electricity supplies. Analyst Ryan Pfingst of B. Riley Financial, who kept a “buy” rating even after trimming his price target from $19 to $15 on August 16, highlighted three key factors sustaining his bullish stance: the prospect of a power purchase agreement (PPA) with the Tennessee Valley Authority (TVA), progress on a Romanian SMR project with RoPower Nuclear, and the company’s sizable cash reserves that should carry it through to those catalysts.

The potential TVA PPA is the most immediate catalyst because it would lock the nation’s largest power customer into a long‑term contract to purchase electricity from a future NuScale SMR at a fixed rate, providing a predictable revenue stream that could trigger construction. At present the arrangement exists only as a handshake, with no firm financial commitments, leaving the deal’s completion a pivotal over‑hang on the stock’s valuation. A signed PPA would markedly reduce the risk of customer cancellations that have previously weighed on the share price. Meanwhile, the Romanian project, though delayed and not slated for completion until the early 2030s, has moved into the next phase of government review after officials cleared it for formal investment earlier this year. Over the next six months the venture will undergo financial structuring and partnership consolidation, a process that could produce a positive announcement at any time and serve as a longer‑term growth driver for NuScale.

Beyond project‑specific developments, NuScale’s balance sheet offers a cushion that analysts view as sufficient to weather the interim period. The company carries virtually no debt and holds about $1.9 billion in cash, a figure largely generated through recent equity offerings that have diluted existing shareholders but bolstered liquidity. Although quarterly operating losses have hovered around $60 million, cash‑flow dynamics have been favorable due to required payments to project partners. The chief financial officer has indicated that a TVA PPA could be finalized by the end of 2026, and while the Romanian deal lacks a firm deadline, officials suggest favorable news could also emerge before year‑end. If these milestones materialize, they would likely lift the stock’s valuation and validate the bullish outlook held by analysts despite the recent price decline.

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