Closing 15% higher on Monday from where it ended on last Friday's market session, NuScale Power (SMR +4.27%) stock started this week with a bang. The nuclear energy stock is poised to end the week in the same way. Shares are rising today after an analyst provided a more optimistic view of the stock.
As of 10:26 a.m. ET, shares of NuScale Power are up 8%, retreating slightly from their earlier rise of 5.8%.
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A new take on NuScale Power stock
Upgrading NuScale Power stock to neutral from underperform, Dimple Gosai, a Bank of America analyst, dropped the price target to $28 from $34. While the price target is a reduction, it still offers an optimistic view of where the stock is headed, implying an upside of more than 42% from yesterday's closing price of $19.67.
NYSE: SMR
Key Data Points
According to thefly.com, Gosai based the new outlook on the belief that the company's design for its advanced nuclear reactors and its agreement with the Tennessee Valley Authority (TVA) contribute to a reduced risk profile.
One hopeful outlook doesn't make a stock a buy
While it's worth noting Gosai's improved sentiment regarding NuScale Power stock, prospective investors must remember that there are still various risks associated with an investment. The company continues to incur losses, and there's no certainty that it will achieve profitability -- or maintain it, for that matter, if it does reach it. At this point, only investors comfortable with speculative investments should consider clicking the buy button. For those with a lower risk tolerance, selecting a nuclear energy exchange-traded fund (ETF) offers a more effective way to gain exposure to the nuclear energy industry while mitigating risk.
