Explore NuScale Power's Fair Values from the Community and select yours

Today is shaping up negative for NuScale Power Corporation (NYSE:SMR) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the 13 analysts covering NuScale Power provided consensus estimates of US$44m revenue in 2025, which would reflect a painful 21% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$54m of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on NuScale Power, given the measurable cut to revenue estimates.

Additionally, the consensus price target for NuScale Power increased 9.4% to US$41.48, showing a clear increase in optimism from the analysts involved.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 37% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 55% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.4% per year. It's pretty clear that NuScale Power's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of NuScale Power going forwards.

Need some more information? We have estimates for NuScale Power from its 13 analysts out until 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.