Texas Capital Initiates Coverage of NuScale Power with Buy Rating and $23 Target Price
Texas Capital has begun coverage of NuScale Power with a Buy rating and a target price of $23, highlighting the company's regulatory approval advantage and lower execution risk compared to other advanced nuclear developers. NuScale's small modular reactor design, the first approved by the U.S. Nuclear Regulatory Commission, is poised for commercial deployment, with expected design approval in May 2025 and planned collaborations for significant power implementations.
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Texas Capital has initiated coverage of NuScale Power with a Buy rating and a target price of $23, citing the company's regulatory approval advantage and lower execution risk compared to other advanced nuclear developers. NuScale offers exposure to the first and only small modular reactor approved by the U.S.
Nuclear Regulatory Commission, featuring a 77 megawatt electric integral pressurized water reactor design. This modular design allows for plants with four to twelve units. Texas Capital noted that the use of standard low-enriched uranium reduces supply chain risk compared to competitors needing higher enrichment levels.
The company highlighted the NRC's expected approval of NuScale's standard design in May 2025, which will overcome a key barrier for near-term commercial deployment. Planned implementations with RoPower and a feasibility study with the Tennessee Valley Authority for up to 6 gigawatts were also mentioned, alongside a partnership with ENTRA1 to accelerate commercial adoption.
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