NuScale Power (SMR) Stock: UBS Sees 40% Downside After Cutting Rating to Sell – Here’s Why

TLDR

• UBS downgraded NuScale Power (SMR) from Neutral to Sell, cutting its price target from $10 to $6
• The stock dropped around 9.4% as the downgrade followed an earlier speculative rally tied to AI power demand
• UBS analyst Jon Windham flagged NuScale’s extended build timeline and lack of firm customer commitments
• UBS forecasts roughly $700 million in cumulative cash burn from 2026 through 2028, with earnings negative through 2030
• Concerns also include limited progress with the Tennessee Valley Authority and setbacks with the RoPower project

NuScale Power (SMR) took a sharp hit Friday after UBS downgraded the stock to Sell from Neutral and cut its price target to $6 from $10. The stock was down 4.4% in premarket trading following the downgrade, and fell as much as 9.4% on the day.

NuScale Power Corporation, SMR

The downgrade comes after SMR had rallied earlier in the week, driven by speculative interest linked to AI-driven power demand. Traders began locking in gains as fundamental concerns resurfaced.

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