NuScale (SMR) Extends Losses on 'Sell' Reco

We recently published 10 Firms Crashing Harder Than Wall Street. NuScale Power Corp. (NYSE:SMR) is one of the worst performers on Tuesday.

NuScale extended its losing streak to a fourth straight day on Tuesday, shedding 13.21 percent to close at $38.37 apiece, as investor sentiment was dampened by a rating downgrade and news that its largest shareholder was looking to sell additional stake in the company.

In a market note, Citigroup gave NuScale Power Corp. (NYSE:SMR) a “sell” recommendation with a price target of $37.50 amid a flurry of negative catalysts, including Fluor Corp.’s sale of its own interest, alongside cutthroat competition, among others.

Citi said that the current share price currently reflects NuScale Power Corp.’s (NYSE:SMR) capability to build around 16 GW of reactors by 2040, while it forecasts total installation in the US to be at 56 GW. This means that optimism for such level of market share appears “too high,” especially as NuScale Power Corp. (NYSE:SMR) has yet to have any confirmed customer.

“We believe the market is giving too much credit for this deal, as the timeline likely will be longer than expected, and the capital needs could weigh heavily, especially since the deal is not guaranteed, [and the company] does not have material near-term customers to fall back on, making it reliant on its active projects unless new entrants emerge, which we view as unlikely,” Citi said.

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Disclosure: None. This article is originally published at Insider Monkey.