NuScale Power Surpasses Analyst Price Target—What’s Next?
Recently, shares of NuScale Power Corp (Symbol: SMR) exceeded the average analyst 12-month target price of $17.92, trading at $18.53 per share. When shares reach an analyst’s target, typically, the analyst has two options: to downgrade their valuation or to adjust the target price higher. Reactions can also be influenced by recent developments within the company that may justify such increases in stock prices.
Within the Zacks coverage universe, six analysts have contributed to this average price target for NuScale Power Corp. However, it is crucial to note that the average reflects a broad consensus rather than a single analyst’s viewpoint. While some analysts project lower price targets, with one estimating a price of $4.50, others anticipate much higher targets, with one analyst setting it at $28.00. The standard deviation among these targets is $9.002.
The reason behind examining the average SMR price target is to leverage the “wisdom of crowds,” aggregating inputs from multiple analysts rather than depending on the opinion of just one expert. As SMR now trades above the average target price, this could prompt investors to reassess the company’s prospects. Is $17.92 merely a milestone on the way to an even higher target, or has the stock become overvalued, suggesting it’s time to consider profit-taking?
| Recent SMR Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 4 | 4 | 4 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 2 | 1 | 1 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 2.13 | 2.0 | 2.0 | 2.13 |
The average rating summarized in the last row employs a scale from 1 to 5, where 1 represents Strong Buy and 5 denotes Strong Sell. This report used data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on SMR—FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
