NuScale(US:SMR) Zhi Tong Cai Jing·2025-10-22 03:40Group 1 - Citigroup downgraded NuScale Power's rating from "Neutral" to "Sell," setting a target price of $37.50, leading to a 12.8% drop in the company's stock price [1] - The downgrade reasons include difficulties in securing binding customer contracts, increased competition from new entrants, pressure from major shareholder Fluor's continued share reduction, and overvaluation of the company [1] - Citigroup analysts estimate that NuScale's current stock price implies expectations of approximately 16 GW of reactor construction by 2040, while the firm predicts a total installed capacity of about 56 GW in the U.S. by that time [1] Group 2 - NuScale aims to finalize a customer agreement by the end of 2025, currently working on a non-binding collaboration with the Tennessee Valley Authority and developer ENTRA1 for a potential 6 GW power purchase agreement [1] - Even if the agreement is signed, NuScale still needs to secure an original equipment manufacturer agreement to supply nuclear power plant modules, indicating uncertainty in the timeline and contract signing [1] - If the 6 GW agreement is fully realized, NuScale may need to invest approximately $500 million in multiple phases to ENTRA1, while the company had only $420 million in cash and equivalents as of Q2 2025 [1]