** 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))
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