NuScale Power Drops as UBS Cuts Rating

NuScale Power dropped 13.66% intraday after UBS downgraded the company to Sell from Neutral. UBS analyst Jon Windham lowered the price target to $6 from $10, which implies roughly 40% downside for the stock.

Windham cited an extended construction timeline of more than five years and the absence of firm customer commitments. The analyst noted that competitors are already breaking ground and moving toward construction while NuScale remains behind.

The downgrade highlights a large gap in financial expectations. Windham estimates the market implies $124 million of EBITDA for 2028, compared with his own estimate of $29 million, a difference of more than four times. His model assumes only one project enters construction in 2028 and projects about $700 million of cumulative cash burn from 2026 through 2028.

Windham projects company revenue will climb from $185 million in 2028 to $924 million in 2030, representing a 123% compound annual growth rate. However, he expects earnings to remain negative throughout that span. UBS also cautioned that project delays, setbacks at RoPower, and limited progress with the Tennessee Valley Authority could widen the forecast gap further.