Flowserve Corporation represents a key investment opportunity amid the rising demand for nuclear power, according to TD Cowen. The company, known for its expertise in pump and valve manufacturing, is strategically positioned to meet the needs of maintaining and retrofitting existing nuclear plants. Currently, Flowserve’s provision of fluid motion controls and instrumentation to nuclear facilities constitutes approximately 5% of its total revenue. TD Cowen projects an 11% increase in Flowserve’s stock, setting a target price of $57, following a year-to-date stock gain exceeding 25%, outpacing the S&P 500’s 20.3% rise.
The resurgence of nuclear power, driven by its potential to offer clean and reliable electricity for artificial intelligence data centers, underpins Flowserve’s growth prospects. Analysts, led by Joe Giordano, emphasized the practicality of restarting dormant plants to fulfill energy demand, in a client note released Monday.
Notably, Holtec International aims to reactivate the Palisades nuclear plant in Michigan by 2025, while Constellation Energy has plans to bring Pennsylvania’s Three Mile Island back into operation by 2028. TD Cowen identifies significant opportunities in servicing nuclear reactors, which includes maintenance, repair, advanced diagnostics, and retrofitting.
Given that the United States has the highest number of nuclear reactors globally, this market is particularly important. Giordano highlighted that Flowserve’s installed base of 5,000 pumps and 15,000 valves across over 200 nuclear plants globally offers substantial opportunities as operators seek to revive older plants and prolong the operational life of current facilities.
According to TD Cowen, nuclear plants with a combined capacity of 85 gigawatts are in various shutdown stages across the U.S. and Europe. Reactivating 50% of these decommissioned sites worldwide could translate into a $4 billion total addressable market for Flowserve, as noted by Giordano.
