Citi Starts Coverage of NuScale Power (SMR) Stock, Gives Neutral

NuScale Power Corporation (NYSE:SMR) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Citi analyst Vikram Bagri began coverage of the company’s stock with a “Neutral” rating and a price objective of $46. The company possesses a first-mover advantage in the industry, which is aided by increased power demand due to the data centers and AI.

Notably, NuScale Power Corporation (NYSE:SMR)’s unrated and approved 77 MW design, modular technology, relationship with Fluor, supply chain partnerships, and no HALEU dependence place it well amidst competition, while new contract announcements remain on the horizon, added the analyst. However, it was also pointed out that significant execution risks are there, while the stock appears to be pricing nearly 50 GW of installs by 2040, added Bagri.

NuScale Power Corporation (NYSE:SMR) announced that it has received design approval from the US Nuclear Regulatory Commission for the uprated 250 MWt (77 MWe) NuScale Power Modules. In Q1 2025, the company’s revenue rose $12.0 million to $13.4 million compared to $1.4 million. This rise was due to revenues generated from FEED Phase 2 project as well as the Technology License Agreement for the RoPower Doicești power plant.

While we acknowledge the potential of SMR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SMR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.