Canaccord Genuity believes Italy’s nuclear power company could be a winner as electricity demand soars due to the expansion of artificial intelligence data centers. The company initiated coverage of Terra Innovatum on Friday with a buy rating. The $10 price target suggests an upside of nearly 140% from Friday’s closing price. This comes after the company’s stock price has fallen more than 80% from its 52-week high in October. Terra Innovatum will decline by 9% in 2026. NKLR YTD Mountain Terra Innovatum 2026 Analyst George Gianaricas said nuclear energy is poised to be the answer to growing electricity demand, thanks to growing political will, a streamlined regulatory framework and support from hyperscalers that are embarking on AI capital investments. Terra Innovatum will benefit from the “SOLO” microreactor. “Its hallmarks include a sophisticated integration of unique safety protocols and a proven operating system of high-temperature gas-cooled reactor technology,” Gianaricas wrote of the reactor. “By utilizing a ‘fabless’ factory-assembled construction model, SOLO avoids the traditional logistical nightmares of nuclear infrastructure, significantly reducing ‘overnight construction costs’ while maintaining fuel flexibility and robust containment measures,” he said. To be sure, the company faces some headwinds as well. Those include long regulatory approval times, the reactors’ dependence on expensive specialty resources such as graphite and helium, and the reactors’ small size, which could undermine traditional economies of scale, analysts said. Despite these hurdles, Gianarikas still thinks tailwinds within the nuclear industry could prevail. “We see a significant opportunity for Terra Innovatum, likely due to the exceptional momentum in the industry,” he wrote.
