Texas Capital has initiated coverage of NuScale Power with a Buy rating and a $23 price target. The bank cited the company's advantageous position in regulatory approvals, offering lower execution risks compared to other advanced nuclear developers. This positive outlook stems from NuScale's unique status as the first SMR design approved by the US NRC.

NuScale's design leverages established light water reactor technology, configuring it for modular deployment. The bank highlighted the advantages of the company's standard low-enriched uranium fuel source, which reduces supply chain risks. Furthermore, the firm sees significant market potential through planned deployments and feasibility studies, particularly as demand for power increases.

The firm also noted agreements with RoPower and the Tennessee Valley Authority, underscoring potential market opportunities. These partnerships, alongside the rising demand linked to data centers and electrification, support a positive long-term outlook for advanced nuclear. Investors should monitor NuScale’s progress as the company pursues commercial deployment and expansion.

Texas Capital anticipates that modular reactor deployment will improve economics over time, potentially leading to broader adoption in the 2030s. This move by Texas Capital signals growing confidence in the small modular reactor market. The bank's assessment suggests that NuScale is well-positioned to capitalize on the increasing demand for advanced nuclear energy.