Texas Capital has started coverage of NuScale Power, assigning a Buy rating and setting a $23 price objective. In its initiation note, the firm pointed to NuScale's regulatory position and comparatively lower execution risk among advanced nuclear developers as key reasons for the positive view.
The bank emphasized that NuScale represents exposure to the first and only small modular reactor that has secured approval from the U.S. Nuclear Regulatory Commission (NRC). The company's reactor is a 77 megawatt electric integral pressurized water reactor that the firm described as building on decades of experience with conventional light water reactor technology. The design is intended for modular deployment, with plants able to be configured in clusters of four to 12 units.
Texas Capital underlined fuel strategy as a differentiator. NuScale's reactors use standard low-enriched uranium, which the bank said is widely available today. That, the note argued, reduces supply chain risk when compared with some peers that require higher enrichment levels or specialized fuel forms. Taken together, the bank said, regulatory approval, reliance on familiar reactor engineering and accessible fuel sourcing lower both development and execution risk for NuScale.
The firm also highlighted the NRC's planned standard design approval for NuScale's flagship reactor in May 2025. Texas Capital called that milestone a clearing of an important regulatory hurdle that could enable near-term commercial deployments while many competitors remain at earlier stages of design.
Texas Capital pointed to several commercial arrangements to illustrate NuScale's market opportunity. These include planned deployments with RoPower, where a final investment decision is targeted by 2027, and a feasibility study with the Tennessee Valley Authority for up to 6 gigawatts of capacity. The note also referenced a partnership with ENTRA1 intended to accelerate commercial adoption, while noting the structure requires upfront capital contributions tied to feasibility milestones before it becomes self-funding.
On demand dynamics, Texas Capital said growing electricity needs linked to data centers, AI infrastructure and broader electrification support a stronger long-term outlook for advanced nuclear. The bank expects that as modular reactor deployment scales, economics will improve over time and foster wider adoption through the 2030s.
Clear summary: Texas Capital began coverage of NuScale Power with a Buy rating and a $23 target, citing the firm's NRC-backed small modular reactor design, conventional reactor lineage, and use of readily available low-enriched uranium as factors that reduce near-term development and execution risk.