Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRyan Vanzo, The Motley FoolSun, September 6, 2026 at 7:50 PM GMT+2 4 min readIt has been a tough year for NuScale Power (NYSE: SMR). Shares have fallen nearly 40% since 2026. One Wall Street analyst remains unfazed.In early August, Rinny Singh, an analyst at Bank of America, reiterated her buy rating on SMR stock, setting a share price target of $12, implying roughly 24% upside over the next 12 months.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Why does Singh remain so bullish despite recent share price weakness? Her bull thesis comes down to one key catalyst -- a catalyst that may soon receive some much-needed momentum.Singh's bull thesis on NuScale stock largely comes down to one critical factor: Can NuScale convert its customer pipeline into revenue-generating projects? The biggest mover from this perspective is the company's 6-gigawatt (GW) project with its financing partner, ENTRA1, and utility provider, the Tennessee Valley Authority (TVA).Right now, NuScale remains the only company in the U.S. with regulatory permission to build a small modular reactor, or SMR. If built, the company's TVA project would be the biggest SMR facility in the world by a large margin.Here's the catch: TVA still hasn't made any firm financial commitments to the project. The deal will be non-binding until a power-purchase agreement (PPA) is signed, locking the utility into buying power from the future NuScale facility.In a note to clients earlier this year, Singh conceded that "converting agreements to firm deals has been slower than anticipated." Singh also expressed concern about NuScale's financial position, citing increased cash burn and near-term funding risk.Image source: Getty Images.Since that note was published, however, NuScale has significantly improved its capital position. As of last quarter, the company has around $1.9 billion in cash and cash equivalents. This resolves most of Singh's funding concerns, though at the price of shareholder dilution.A vastly improved balance sheet now let's NuScale focus on executing Singh's most valuable catalyst: converting the non-biding TVA deal into a firm, revenue-generating project. That catalyst would be realized with the signing of a PPA. According to NuScale's management team, a PPA could be in place by the end of 2026.Last quarter, NuScale's CEO specifically called out "continued advancement on the ENTRA1 and TVA power purchase agreement discussions." NuScale's CFO added that the nuclear company is "hopeful that TVA can come across the line at some point later this year."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info