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NuScale Power (NYSE:SMR) +32.2% in Monday’s trading to its highest in more than a year on expectations the designer of small modular reactors will be able to raise capital by issuing fewer shares than previously expected; the company described its funding plans in a 10-K filing late Friday.
Maintaining its Buy rating but raising its stock price target to $8 from $4.25, Canaccord Genuity analyst George Gianarikas said he continues to estimate NuScale (SMR) will require ~$450M of additional capital before generating positive free cash flow by 2031, but now assumes the additional capital will be raised at $6/share, up from his previous estimate of $1.75, which would result in materially less dilution than previously estimated.
Small modular reactors “promise to solve many of nuclear power’s historical cost and safety issues and significantly capitalize on future nuclear momentum,” Gianarikas writes, and NuScale (SMR), with the only SMR approved by the U.S. Nuclear Regulatory Commission, “should gain significant traction… riding the coattails of SMR adoption and U.S. strategic imperatives.”
NuScale (SMR) shares are tallying their fifth straight daily gain and have quadrupled invalue in slightly more than three weeks.
