SMR - Why NuScale Power Stock Keeps Going Down
2024-03-20 12:30:09 ET
NuScale Power (NYSE: SMR) shrugged off the report of a money-losing fourth quarter last week, but it can't quite shake the effects of a Wall Street sell rating . After Wells Fargo downgraded the stock to underweight yesterday, NuScale shares lost 35% -- and they're losing another 23% through 11 a.m. ET on Wednesday.
The producer of small modular nuclear reactors reported horrible earnings last week: Quarterly sales nearly doubled, but quarterly losses were twice as bad as anticipated, at $0.25 per share, and the total loss for the year was more than $180 million.
The company shook off this bad news thanks to a vote of confidence from Canaccord Genuity on Monday that sent its shares soaring. But on Tuesday, Wells Fargo gave investors a reality check. "Investor enthusiasm for SMR is misguided," Wells Fargo said, and NuScale's small modular nuclear reactors were simply "not cost competitive" with competing energy sources. Investors panicked, and the stock sold off.
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Why NuScale Power Stock Keeps Going Down