SMR - NuScale Power: Some Caution Advised After A Strong Move
2024-06-25 17:29:55 ET
Summary
- NuScale Power Corporation stock has surged by over 2x in 2024, outperforming the benchmark index and other industrial stocks.
- There is still no clarity on when the green light will be given for FEED-Phase II of the RoPower Nuclear contract.
- NuScale Power is unlikely to turn profitable over the next three years, and continues to burn cash, but the pace of operating cash outflows may reduce in the short term.
- Despite a favorable policy environment, the risk-reward on the charts for a long position at current levels is not too conducive.
- Notable insiders and the institutional cohort have been trimming their positions during the rally this year.
Introduction
The stock of NuScale Power Corporation ( SMR ), an entity that appears to be at the vanguard of small modular reaction nuclear technology, has enjoyed a stupendous ride in 2024. In a year when the benchmark index has managed returns of mid-teens, and other industrial stocks have managed returns of single-digits, SMR has surged ahead, seeing its market cap expand by over 2x!...
NuScale Power: Some Caution Advised After A Strong Move