Oklo Surges as BofA Initiates Buy Rating with $92 Price Target

Oklo, a nuclear power company, saw its stock rise 3.9% on Tuesday after Bank of America initiated coverage with a Buy rating and $92 price target. The analyst cited the largest visible pipeline and potential upside from hyperscalers, backing Oklo's momentum with rising support from the U.S. Department of Energy and data.

Oklo Inc. (OKLO), a small modular reactor (SMR) nuclear power company, saw its stock rise by 3.9% on Tuesday following Bank of America's initiation of coverage with a Buy rating and a $92 price target. The analyst, Dimple Gosai, highlighted Oklo's significant potential in the nuclear power sector, particularly its large and visible pipeline, and its position in the AI-dominated stock market.

Oklo's stock gained momentum as the analyst cited the company's substantial customer pipeline, which includes more than 14 GW of Memorandums of Understanding (MoUs), representing approximately 30% of the global SMR pipeline. The company's strategic partnership with Liberty Energy is also expected to bridge the gap in power supply, offering gas-fired "prompt power" to operators needing immediate energy solutions. This partnership will enable earlier monetization and a smoother path to SMR deployment.

The analyst noted that Oklo's vertically integrated build-own-operate model is well-positioned to succeed in the early phase of the SMR market. By taking on balance sheet risk, Oklo can deliver fully wrapped, bankable power purchase agreements and capture the full Independent Power Producer (IPP) economics. Additionally, Oklo's reliance on HALEU fuel, which it has secured from Department of Energy stockpiles for its first project, de-risks early deployment. The company also has access to excess weapon-grade plutonium, enough for 30-40 of its 75 MW units, at a cost 70-80% lower than fresh HALEU.

Oklo's stock performance is also backed by the rising momentum for nuclear power, supported by both the U.S. Department of Energy and data center operators. The company's focus on sustainable energy solutions positions it as a potential player in the growing nuclear sector.

References:
[1] https://www.investors.com/news/nuclear-oklo-more-stock-market-upside-big-tech-ai/
[2] https://seekingalpha.com/news/4489284-oklo-initiated-buy-at-bofa-citing-largest-visible-pipeline-with-hyperscaler-upside
[3] https://finance.yahoo.com/news/oklo-stock-climbs-bofa-kicks-203908468.html