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NuScale Power (NYSE:SMR) +5.7% and Centrus Energy (NYSE:LEU) +2.8% in Friday's trading as B Riley Securities named both nuclear technology names as Buy recommendations, with respective $12 and $72 price targets.
B Riley said it believes NuScale's (SMR) technology will become a key part of the energy mix due to three main characteristics: carbon-free baseload power, proven technology and safe design, and the ability to scale cost-effectively.
As the only small modular reactor to receive Standard Design Approval from the U.S. Nuclear Regulatory Commission, NuScale (SMR) has a meaningful first-mover advantage over other reactor companies in various stages of development, the firm said.
Company management is bullish on its customer pipeline, especially via ENTRA1, a partner that will develop and own NuScale (SMR) plants for certain customers, B Riley said, adding the company has ~18 MoUs and is in advanced discussions with multiple entities.
The firm likes Centrus Energy's (LEU) important lead in HALEU production because it is building the first NRC-licensed uranium enrichment plant in the U.S. to produce high-assay, low-enriched uranium - HALEU - utilizing U.S. enrichment technology, which could be the catalyst for significant growth in future years.