NuScale Power Corporation (NYSE:SMR) shares are trading lower Tuesday after Barclays downgraded the stock to Underweight from Equal Weight rating and cut its price target to $5 from $11.
- NuScale stock is testing lower boundaries. Why did SMR hit a new low?
Barclays Cuts NuScale to Underweight and Lowers Its Target by More Than Half
According to Investing.com, the downgrade comes with the stock already near its 52-week low of $5.44. GuruFocus reported that Barclays cited mounting execution risks from delays in commercial development and uncertainty around contracts. The firm’s target was $45 in February, and it cut it to $15 and then to $11 in July, when it cited slower progress on work with the Tennessee Valley Authority. NuScale reported just $75,000 in revenue last quarter, against projected cash needs that run into the billions.
The Downgrade Follows Other Bearish Calls and Dilution Worries
Investing.com called the downgrade the latest in a string of negative analyst moves. UBS cut its rating to Sell and its target to $6 from $10, citing erosion of NuScale’s first-mover advantage, weak customer commitments and roughly $700 million of expected negative free cash flow between 2026 and 2028. RBC Capital trimmed its target to $7 and kept a Sector Perform rating, calling the stock speculative risk. Shareholders have also raised dilution concerns over NuScale’s $750 million at-the-market share offering.
NuScale Shares Drop
SMR Price Action: At the time of publication, NuScale shares are trading 7.56% lower, at $5.26, according to data from Benzinga Pro.
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