Roth Capital Initiates Terrestrial Energy, Deep Fission with Buy
Terrestrial Energy and Deep Fission stock rose after Roth Capital initiated coverage with Buy ratings and $15 and $18 price targets.
Key points
- Roth Capital initiates Terrestrial Energy and Deep Fission with Buy ratings and $15 and $18 price targets.
- Terrestrial Energy cites a $69/MWh cost advantage over legacy nuclear options for its molten salt reactor.
- Deep Fission’s 15 MWe borehole reactor design avoids costly containment systems and targets 2027 commissioning.
Terrestrial Energy and Deep Fission shares advanced in Tuesday trading following the initiation of coverage by Roth Capital. The firm assigned Buy recommendations to both nuclear technology firms, setting price targets of $15 for Terrestrial Energy IMSR and $18 for Deep Fission FFISN. This analyst action preceded a 4.1% gain for Terrestrial and a 5.2% increase for Deep Fission.
According to TradingView, the move reflects institutional validation of specific operational milestones. Roth Capital analyst Craig Irwin cited competitive positioning and regulatory progress as key drivers for the positive outlook. The recommendations tie directly to each company’s unique technical approach and recent participation in federal energy programs.
Terrestrial Energy Cost Advantage
Terrestrial Energy’s molten salt reactor technology is positioned to supply power for the U.S. Army’s Aberdeen Proving Ground project. Irwin described the potential win in the competitive bid for Ameresco’s plant as a strong positive for the business. The core financial argument rests on the levelized cost of energy.
Management estimates a cost of $69 per megawatt-hour for the Terrestrial plant. This figure is significantly lower than the more than $140 per megawatt-hour associated with legacy nuclear options. Additionally, the company’s inclusion in the U.S. Department of Energy’s Pilot Reactor and Pilot Fuel Line programs is expected to streamline the approval processes for its plant designs and salt fuel methods.
Deep Fission Borehole Design
Deep Fission’s strategy involves placing a 15 megawatt-electric reactor at the bottom of a 6,000-foot borehole. This design eliminates the need for expensive containment systems. It also positions the reactor at twice the depth of geologic repositories approved for spent fuel storage.
The firm was selected as one of ten companies for the DoE’s Reactor Pilot Program, which accelerates project approvals. Irwin noted that regulatory progress and the construction of the Parsons, Kansas, facility are likely catalysts. The company expects to commission the facility by 2027.
Regulatory Pathways Accelerate
Both companies benefit from federal support that reduces approval timelines. For Terrestrial, the DOE programs simplify the validation of reactor and fuel processes. For Deep Fission, the Reactor Pilot Program selection provides a structured path toward commercial deployment. These programs leverage technology that is already mature from other industries, reducing technical risk for investors.
