Wall Street Loves NuScale Power. Here's the Risk Analysts Are Glossing Over.
NuScale Power investors may face ongoing share dilution.
Overview
NuScale Power (NYSE: SMR) is a popular nuclear energy stock with significant upside potential. The company is valued at just $4 billion despite operating in what could become a $300 billion global market.
In general, Wall Street analysts are bullish on the company. The consensus price target of $11.85 suggests nearly 30% in near-term upside. Two analysts believe shares could double in value over the next 12 months.
Details
There's no doubt about NuScale's potential. The company specializes in small modular reactors, or SMRs. This technology has been around for decades, with only two SMR facilities ever commercialized worldwide. Adoption of SMRs, however, is heating up quickly. More than 80 SMR systems are currently in development, largely thanks to a single catalyst: rapidly rising energy demand from artificial intelligence (AI) companies.
Source
Originally published at www.fool.com.