NuScale Power shares have fallen nearly 40% in 2026, but Bank of America analyst Rinny Singh has reiterated a buy rating on the stock. Her thesis rests on a single catalyst: converting a non-binding small modular reactor deal with the Tennessee Valley Authority into a signed power-purchase agreement.
NuScale Power stock has dropped hard this year, yet one Wall Street analyst is not backing away. In early August, Singh reiterated her buy rating on the stock, setting a $12 price target, implying roughly 24% upside over the next 12 months.
A 6-gigawatt project hangs on one signature
NuScale remains the only company in the United States with regulatory permission to build a small modular reactor. Its biggest opportunity is a 6-gigawatt project developed with financing partner ENTRA1 and utility provider the Tennessee Valley Authority (TVA) — a facility that would be the largest SMR project in the world if built.
However, the TVA deal remains non-binding until a power-purchase agreement (PPA) is signed, locking the utility into buying power from the future plant. According to Singh, "converting agreements to firm deals has been slower than anticipated." She had also flagged rising cash burn and near-term funding risk.
Cash position eases financing concerns
Since that note, NuScale has built up around $1.9 billion in cash and cash equivalents as of last quarter, resolving most of Singh's funding worries, though at the cost of shareholder dilution. That stronger balance sheet now lets management focus on landing the PPA.
NuScale's CEO recently pointed to continued advancement on the ENTRA1 and TVA power-purchase agreement talks, and the company's CFO said management is hopeful TVA can finalize the deal later this year. Management has said a PPA could be signed by the end of 2026.
Why a signed deal would matter
ENTRA1 was approved for $25 billion in government funding last year to build large-scale energy projects, though not all of it is earmarked for NuScale. A firm TVA commitment this year would still hand NuScale's technology real validation and could push the market to assign more value to its broader customer pipeline.
Singh is not alone in her outlook — the Wall Street consensus price target for NuScale also sits around $12 a share. But the case for the stock stands or falls on whether TVA actually signs.
Source: The Motley Fool
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