NuScale Power faces UBS downgrade amid EBITDA and execution concerns

NuScale Power Corp. experienced significant stock volatility following a downgrade from UBS. The investment bank lowered its rating on the small modular reactor (SMR) developer from Neutral to Sell and reduced its price target from $10 to $6, suggesting a potential 40% downside.

UBS analysts cited an extended construction timeline, a lack of firm customer commitments, and a projected $95 million gap in 2028 EBITDA compared to market expectations as primary concerns. The firm also anticipates a cumulative cash burn of approximately $700 million between 2026 and 2028.

While the company has benefited from sector-wide enthusiasm surrounding nuclear energy and AI data center needs, analysts note that NuScale has yet to build a reactor for a customer. Despite recent intraday gains driven by broader market trends, the company faces high upfront costs and execution risks that may impact its long-term valuation.