Is NuScale Power Stock a Buy After September Slump?

NuScale Power (SMR) dropped 14.8% in September and sits down nearly 55% year-to-date, as analyst downgrades, cash-burn worries, and competitive pressure stack up against the stock.

UBS delivered the sharpest blow, downgrading SMR to sell with a $6 price target. The firm cited a lack of firm customer commitments and a build timeline of more than five years, while competitors advance faster.

The financials back up the bearish case. Q2 revenue collapsed 99% to just $75,000, and the company posted $65 million in operational losses. That pairing of near-zero sales and heavy spending is the core of the cash-burn concern.

The bull argument rests on conversion of a non-binding agreement with TVA into a definite contract. Without that kind of firm commitment, UBS's criticism stands. Interpretation: the market is pricing SMR on contract execution, not on current revenue, which leaves the stock sensitive to any headline on customer commitments.

The next major test arrives with Q3 earnings on Nov. 5, when investors expect an update on the TVA agreement.