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Nuclear power is poised to grow significantly as investment picks up around the world after a long period of stagnation, according to Goldman Sachs. The nuclear industry suffered from years underinvestment in the wake of the Fukushima nuclear accident in Japan in 2011. But the sector is now at an inflection point as governments around the world agree that nuclear will play a key role in the transition to energy that emits less carbon, according to Goldman. Global investment in nuclear power has increased rapidly over the past four years, with a compound growth rate of 14% compared to about 1% before 2020, according to the investment bank. The policy environment has also become favorable, with President Donald Trump signing several executive orders on Friday that aim to speed up nuclear deployment. Goldman points to these stocks as ways for investors to gain exposure to the trend. Cameco Corp. — One of the largest uranium mining companies in the world with a $25 billion market capitalization, Cameco offers 100% exposure to the nuclear value chain. It owns stakes in two mines in Canada and one in Kazakhstan. The company also has a 49% position in Westinghouse, giving it exposure to reactor construction as well. Goldman’s rates Cameco as buy with a price target of $65, suggesting 11% upside. NuScale — It is the only company in the U.S. that has submitted a small modular reactor design to the NRC, and is expected to receive final certification this year. Small modular reactors are expected to play a key role in the future of nuclear, promising to reduce costs and speed deployment. Goldman is neutral on NuScale and gives it a price target is $24, implying 21% downside. GE Vernova — A diversified manufacturer of power equipment, GE Vernova has a small modular reactor design that has been approved for construction in Ontario, Canada. The company sees an opportunity to add as much as 5 gigawatts of nuclear-generated energy in the U.S. through the end of the decade. Goldman rates GE Vernova a buy with a price target of $500, implying upside of more than 7%. Vistra — The independent power producer owns a generation portfolio of 41 gigawatts, including6.5 gigawatts of nuclear. Vistra is considered a candidate to strike a power agreement with a data center or other large customer for nuclear. Goldman is neutral on Vistra with a price target of $134, implying 15% downside. Mitsubishi Heavy Industries — Nuclear power is one of the Japanese company’s key business segments. Mitsubishi is focused right now on restarting the nuclear plants in Japan that were closed in response to the Fukushima accident. The restarts and maintenance work will lift Mitsubishi for the foreseeable future, according to Goldman. American depositary receipts trade under ticker symbol MHVYF in the U.S.
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