Why NuScale Power Stock Is Plunging Down Today

Source Motley_fool

Key Points

  • UBS reduced its price target on NuScale Power stock.

  • Analysts often have shorter investing horizons than the longer holding periods that The Motley Fool favors.

  • Despite the price target cut, NuScale Power represents a compelling investment opportunity.

  • 10 stocks we like better than NuScale Power ›

Starting the week on a bright note, shares of NuScale Power (NYSE: SMR) ended yesterday's trading session more than 4% higher than where they had ended last week. Today, however, the stock is giving back its gain from Monday -- and then some. An analyst's increasingly bearish outlook on the advanced nuclear power stock is charging up investors and motivating them to click the sell button.

As of 12:18 p.m. ET, shares of NuScale Power are down 6.7% while the S&P 500 is up 0.5%.

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sad investor looks at laptop.

Image source: Getty Images.

Another Tuesday price target drop is tanking the stock

Projecting that shares will plunge, UBS downwardly revised its price target for NuScale Power stock by approximately 47% to $20 from $38, while maintaining its neutral rating. According to thefly.com, UBS based its action on the company's third-quarter 2025 financial results, as well as the timing of payments related to the partnership with ENTRA1 Energy, which is working to develop nuclear power capacity for the Tennessee Valley Authority.

Based on the stock's closing price of $19.94 on Monday, the new UBS price target implies that NuScale Power was fairly valued at the market close yesterday.

Earlier this month on Nov. 11, Northland analyst Jeff Grampp lowered the price target on NuScale Power to $30 from $40.

Is NuScale Power stock a buy on the current pullback?

While the stock's decline today may be disconcerting for potential investors, it's essential to recognize that those who are trimming (or exiting) their positions solely based on the analyst's price target cut today are being somewhat shortsighted. Analysts often have shorter investing horizons than the multi-year holding periods that The Motley Fool favors.

As a leader in the development of advanced nuclear reactors, NuScale Power stock provides a compelling nuclear energy opportunity that is certainly worthy of further consideration, even with UBS taking a bearish perspective today.

Should you invest $1,000 in NuScale Power right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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