Nuscale Power (NYSE: SMR) is experiencing a significant surge, climbing as much as 15.8% during Wednesday’s early trading, currently sitting at an increase of 13.7%. This uptick follows the company’s earnings report, contributing to a remarkable 23% growth in shares this month.
Nuscale Power, known for developing small modular reactors, hasn’t yet commercialized its products but has just secured a noteworthy contract that represents the largest SMR deployment in U.S. history.
On September 2, ENTRA1 Energy announced a deal to deploy six plants aimed at adding new nuclear power generation capacity of up to 6 gigawatts (GW) across seven states for the Tennessee Valley Authority (TVA). As the largest public power supplier in the nation, TVA’s capacity could provide electricity to around 4.5 million homes, illustrating the potential for collaborative efforts between public and private sectors in U.S. nuclear energy advancements.
You might wonder what this means for Nuscale—well, it’s quite significant.
ENTRA1 Energy is Nuscale Power’s exclusive partner for global commercialization. Essentially, this means that Entra1 has the sole rights to develop, market, and sell Nuscale’s modules and SMR technologies, including the six plants being built for TVA.
This momentous deal really underscores Nuscale’s emerging influence in the energy sector, and it’s not surprising that analysts and investors responded positively, boosting the stock’s appeal today.
Following the announcement, multiple analysts raised their price targets for Nuscale Power’s stocks. For instance, Canaccord Genuity highlighted the potential for growth post the TVA-Entra1 deal, setting a new price target of $60 per share, which would represent an upside of about 50% from its current levels.
Notably, Nuscale’s SMR design holds distinction as the only one certified by the U.S. Nuclear Regulatory Commission, having gained approval for its second design earlier this year. This, along with the TVA contract, suggests that Entra1’s operations could be strengthened, potentially bringing Nuscale closer to generating revenue. As Nuscale continues to solidify its partnership with ENTRA1 Energy, it’s reasonable to anticipate further upward movement in its stock values.
