NuScale Power in Rebound Mode With Short-Squeeze a Possibility

Core Viewpoint - NuScale Power's stock has rebounded significantly following a correction, driven by positive developments in supply chain and project advancements, with a target for its first firm nuclear technology order by year-end [1][2]. Group 1: Business Developments - The Flour Phase 2 project is progressing, expected to replace a coal-fired power plant with a VOYGR-6 power plant, which integrates six NuScale power modules [2]. - Anticipated design upgrades will enhance power output and efficiency, making the units more appealing to clients in power-intensive industries [3]. - Revenue surged by triple digits in Q1, primarily due to the FLOUR Doicestei power project, although the $13.4 million revenue is lower than future expectations [9]. Group 2: Financial Position - The company has a well-capitalized balance sheet, with sufficient cash to sustain operations for nearly 15 quarters at the current burn rate [10]. - The dilutive impact from share sales is minor, approximately 5.6% diluted year-over-year, indicating that additional sales may not be necessary [10]. Group 3: Market Sentiment - Short interest in NuScale Power is historically elevated, with potential for a short squeeze following the Q1 updates [4]. - Analysts rate the stock as a Moderate Buy, with institutional ownership nearing 80%, indicating bullish sentiment [5]. - The stock price is currently testing a critical resistance point near $19, with potential market corrections anticipated [6][7].