NuScale Power (SMR) Stock Rises After Bank of America Upgrade

NuScale Power Corporation (NYSE: SMR) experienced significant gains on Friday, January 9, 2026, following a rating upgrade from Bank of America Securities analyst Dimple Gosai. The stock jumped over 8% in morning trading, reaching $21.28 as of 9:54 AM EST.

The upgrade comes after the small modular reactor technology company experienced a substantial correction from its previous highs, with BofA upgrading the stock from Underperform to Neutral while adjusting its price target to $28 from the previous $34, still implying a potential 42% upside from current levels.

Bank of America Turns Neutral on NuScale Power

Bank of America’s decision to upgrade NuScale Power reflects a recalibration of the company’s valuation following an approximately 60% share price correction from its post-TVA announcement peak. Analyst Dimple Gosai noted that this substantial decline has brought the stock to a more balanced risk-reward position, warranting the upgrade despite ongoing near-term challenges. The analyst emphasized that the company recently overcame a period marked by a mismatch between stock price and fundamental value, driven by ENTRA1 milestones, higher near-term cash requirements, and dilution risks.

While upgrading the rating, BofA lowered its price target to $28 from $34, acknowledging several persistent headwinds including funding and timing mismatches in the ENTRA1 Partnership Milestones Agreement, elevated near-term cash needs, and incremental dilution that accelerates ahead of original equipment manufacturer revenue generation. Despite these concerns, the firm maintained its long-term deployment view of approximately 18 gigawatts cumulative capacity through 2040 for small modular reactors, signaling confidence in the sector’s growth trajectory even as near-term challenges persist.

The upgrade does not represent a shift in BofA’s long-term perspective on SMRs but rather acknowledges that the current valuation better reflects the company’s near-term obstacles. Gosai specifically pointed to near-term cash cadence issues and equity overhang as factors keeping the risk-reward profile balanced at current levels, making a Neutral stance more appropriate than the previous Underperform rating.

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SMR Stock Reaction and Key Market Metrics

As of 9:54 AM EST on January 9, 2026, NuScale Power stock was trading at $21.28, up $1.61 or 8.19% for the day, with the stock opening at $21.49 after closing at $19.66 the previous session. Trading volume reached approximately 16 million shares by mid-morning, below the company’s three-month average daily volume of 26 million shares. The stock’s intraday range spanned from $20.71 to $21.77, reflecting strong buying interest following the upgrade announcement.

Year-to-date, SMR has demonstrated impressive performance with a gain of approximately 50.46%, significantly outpacing the S&P 500’s 1.32% increase over the same period. However, the one-year picture tells a more volatile story, with the stock up just 8.33% compared to the S&P 500’s 17.19% gain, reflecting the sharp correction from earlier peaks. The company’s 52-week range of $11.08 to $57.42 illustrates the extreme volatility that has characterized the stock over the past year.

NuScale Power currently carries a market capitalization of approximately $6.03 billion and maintains 330 full-time employees. The company’s financial profile shows significant losses, with a diluted EPS of -$2.14 and net income available to common shareholders of -$379.94 million on trailing twelve-month revenue of just $63.9 million. Despite the losses, the company maintains a strong balance sheet with $691.79 million in total cash and no debt-to-equity ratio reported. Wall Street’s consensus rating for the stock is Hold, based on five Buy, six Hold, and two Sell ratings, with an average price target of $32.77, suggesting potential upside of over 50% from current levels.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.