Panos karas displays conceptual image of particle explosion diagram through shutterstock_
Nuclear energy provider Oklo (OKLO) made its public debut last year through a special purpose acquisition company (SPAC) merger, of course, with the operation of artificial intelligence (AI) and data centers bringing benefits to the growth of nuclear power, creating excessive demand for electricity. In fact, the stock has just reached a fresh street price target this month, indicating a growing belief in its long-term potential.
When Oklo won a major government contract to power an Alaska air base, Wedbush analysts raised the price target for the company's stock from $55 to a high street price target of $75. Wedbush believes that Oklo's huge potential can leverage the growing demand for clean energy. They see the startup as a “clear leader” in the field, based on its business model.
Oklo shares recently hit a new 52-week high of $73.55, slightly below the street highest target, but have since withdrawn the $55 level.
California-based Oklo (OKLO) was founded in 2013 with a focus on small modular reactors (SMR), and it is working to facilitate commercial operations. Oklo has a market capitalization of approximately $7.8 billion. Unlike traditional nuclear reactors selling electricity to utilities, Oklo plans to operate its microreactors directly and sell electricity directly to customers, which are expected to provide recurring revenue and greater flexibility to deploy nuclear power.
Although Oklo remains a pre-revenue company, its stock has been soaring lately as nuclear power attracts. The stock has soared 528% over the past 52 weeks. In 2025 alone, Oklo's stock will rise 165%.
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On May 13, Oklo reported its first quarter results. As mentioned earlier, the company has not generated any revenue yet. The company reported a total operating expense of $17.9 million, followed by its operating losses. This is mainly due to wages and professional expenses. The fees also include approximately $2.3 million in non-cash stock compensation.
Its net loss narrowed to $9.8 million from $24 million year-on-year. Net loss per share fell from $0.34 to $0.07, better than Wall Street analysts expected a loss of $0.10 per share. Moreover, it seems that Oklo does not have difficulty generating cash at the moment. By the end of the first quarter, the company's cash and sellable securities totaled $260.7 million.
Oklo is very optimistic about its operations. The company and the U.S. Nuclear Regulatory Commission (NRC) (NRC)’s Aurora In-Inl Powerhouse merger license application (COLA) initiated the first phase of its pre-ready assessment.
Additionally, Oklo is eligible for a contract to install Advanced Nuclear Power (ANPI), a U.S. Department of Defense (DOD) program that promotes the deployment of nuclear power. This qualification opens up the possibility of Oklo's recent deployment on defense equipment.
The company has also increased its potential revenue stream by acquiring a company specializing in the production of radioactive isotopes, especially AI, defense, medical and industrial applications.
These developments, coupled with increased interest in energy generation and a series of nuclear power supporting executive orders, position the company's growth in the near term. Unless there are unforeseen circumstances, OKLO aims to achieve active factory operations starting from the end of 2027 or early 2028.
In addition to Wedbush's top street targets, Seaport Global's Jeff Campbell also showed significant confidence in the company's growth prospects, upgrading its stock from “neutral” to “buy” and allocating a $71 price target. William Blair also started Oklo's coverage with a “outperform” rating.
William Blair analysts, led by Jed Dorsheimer, believe the company is “outstanding” in the nuclear industry due to its unique business model and can benefit greatly from the high standards looking to sign a power purchase agreement. HC Wainwright also launched Oklo's report with a “buy” rating, with a price target of $55.
Oklo scored high on Wall Street, with analysts giving it a consensus “medium buy” rating. Of the nine analysts covering the stock, five rated it as a “strong buy,” one said a “medium buy,” and three were playing safely with a “hold” rating. The consensus target price is $60.28, representing a 9% upward potential. However, Wedbush's highest street price target is $75, which means 36%.
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On the date of publication, Anushka Mukherji has no (direct or indirect) position in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on barchart.com
