Oklo (OKLO) Shares Surge 6.4% as Analysts Praise Bullish Rating and Higher Price Target

Oklo Inc. (NYSE:OKLO) shares rose 6.41% to $77.89 on Thursday, driven by Bank of America's bullish rating and higher price target of $92. The investment firm expects Oklo to benefit from the booming AI sector and achieve 13% unlevered IRR for its first 75 MW projects and 26% IRRs through supply chain scale and cost efficiencies. BofA also predicts 60% EBITDA margins, far higher than the sector's mid-teen levels.

Oklo Inc. (OKLO) saw its stock rise by 6.41% to $77.89 on Thursday, following Bank of America's initiation of a bullish rating and an increased price target of $92. The investment firm expects Oklo to benefit from the booming AI sector and achieve significant returns. The analyst predicts a 13% unlevered IRR for Oklo's first 75 MW projects, with further scale and cost efficiencies boosting IRRs to 26%. Additionally, Bank of America forecasts 60% EBITDA margins, well above the sector's mid-teen levels [1].

Oklo's stock performance is driven by several factors. The company's strategic role in the AI-driven energy demand growth was highlighted by the analyst, who noted the company's vertically integrated model and partnerships with data centers. Oklo's large and visible pipeline, representing approximately 30% of the global small modular reactor (SMR) pipeline, also contributes to its appeal. The company's partnership with Liberty Energy is expected to bridge the gap in power supply, offering gas-fired "prompt power" to operators needing immediate energy solutions [2].

Oklo's stock performance is further supported by the rising momentum for nuclear power, backed 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. Despite regulatory hurdles without Nuclear Regulatory Commission (NRC) approvals, Oklo benefits from Trump-era policies accelerating nuclear reactor approvals [2].

Oklo's stock performance has been remarkable, with a 940% increase over the past year. The company has received letters of intent from clients aiming for up to 750 megawatts of power for U.S. data centers and has forged significant agreements, including a deal with Switch to deploy 12 gigawatts of their Aurora powerhouse projects through 2044. However, Oklo faces uncertainties, primarily the absence of NRC design approvals, which differentiates it from competitors like NuScale Power [2].

Oklo's financial metrics present a mixed picture. The company's enterprise value is pegged at $9.98 billion, with substantial liquidity indicated by its current ratio of 71.3 and a quick ratio of 70.2. While these figures emphasize financial resilience, net income remains negative, alongside dwindling free cash flow and substantial capital expenditures, reflecting ongoing challenges in achieving profitability [2].

Investor sentiment is buoyant, with Oklo benefiting from favorable governmental policies towards nuclear energy and strategic collaborations gaining market attention. Jim Cramer, the host of CNBC's "Mad Money," also recommended buying Oklo Inc. (OKLO) and Carrier Global Corporation (CARR) on July 2, 2025, citing the company's significant total addressable market (TAM) and profit potential [3].

References:
[1] https://www.ainvest.com/news/oklo-surges-bofa-initiates-buy-rating-92-price-target-2508/
[2] https://www.ainvest.com/news/oklo-stock-surges-4-bullish-buy-rating-ai-energy-demand-growth-2508/
[3] https://www.ainvest.com/news/jim-cramer-advises-kodiak-sciences-recommends-oklo-carrier-global-2508/