The Zhitong Finance App learned that Barclays downgraded the rating of small modular reactor technology provider NuScale Power (SMR.US) from “holding” to “reducing holdings”. The target price is 5 US dollars because the delay in implementing key commercialization contracts poses risks.
Barclays analyst Christine Cho believes NuScale's investment logic depends on commercialization milestones, and these milestones were achieved more slowly than expected, increasing the company's execution risk.
Most notably, Cho indicated in the report that the Tennessee Valley Authority (TVA) and ENTRA1 Energy have yet to announce a final power purchase agreement (PPA) to support a 6-gigawatt deployment plan using NuScale's small modular reactor technology. This increases the risk that negotiations could be extended until 2027.
Although NuScale continues to make progress in the supply chain, including manufacturing long-lead components and first-time boron oxide cores, Cho believes that these developments “are more of a prerequisite than a defining milestone for the project.” In the absence of a binding customer agreement, the analyst believes that “it is still difficult to determine when NuScale will be able to transform the design and supply chain into financing projects, construction activities, and finally achieve commercial deployment.”
Meanwhile, Cho maintained an “plus” rating on Oklo (OKLO.US), saying that its Texas Groves project “actually demonstrated execution” and that the project advanced from breaking ground in September 2025 to the first critical state in August 2026. The initial critical phase usually indicates that the nuclear reactor has reached a state where it can carry a self-supporting chain reaction, and is an important point in the commissioning phase of a nuclear power project. Additionally, Groves-2 Forge provides a way for Oklo to build a larger, vertically integrated commercial isotope platform.
NuScale closed down 1.93% to $5.58 on Tuesday, hitting a 52-week low of $5.33 during the session. The stock has accumulated a decline of more than 60% since this year.