** Brokerage Citi Research starts coverage on utility firm NuScale SMR.N with neutral/high risk rating and $46 PT

** PT implies a 26% upside to the stock's last close

** Brokerage highlights NuScale's role in capitalizing on rising data center demand and having first-mover advantage, but also flags significant execution risks

** NuScale has the only approved small modular reactor $(SMR)$ design in the US, modular technology not dependent on HALEU fuel, and strong supply chain and partner relationships (notably with South Korea's Doosan and Fluor Corp FLR.N) - brokerage says

** Key risks include execution challenges, FLR ownership overhang, uncertain revenue models, possible cost overruns, intensifying competition, and expected negative free cash flow in the near term - Citi

** Rising power demand, especially from datacenters and AI could boost nuclear's role in the energy mix, and NuScale is in talks with several datacenter customers, expecting a first plant by 2030, according to Citi

** Including session's move, SMR stock up 103.6% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))