Oklo whipsaws amid BofA downgrade, accelerated future review process by the Nuclear Regulatory Commission
Shares of Oklo were volatile in early trading, falling as Bank of America downgraded the stock to “neutral” from “buy” before getting a short-lived jolt after the nuclear technology company said regulators accepted a key design report faster than anticipated. The stock is down about 3% as of 10:05 a.m. ET.
“Valuations now embed deployment ramps and discount rates we view as unrealistic at this stage of SMR [small modular reactor] adoption,” BofA analyst Dimple Gosai wrote. “While we remain constructive on Oklo’s differentiated build-own-operate model, pipeline conversion, HALEU recycling, and DOE/DoD contracting, we view near-term risk/reward as balanced.”
She also raised her price target to $117 from $92.
Separately, the US Nuclear Regulatory Commission accepted Oklo’s Principal Design Criteria topical report “in just 15 days, compared to the typical 30–60 days following submission,” the company shared in a press release, noting that “recent legislation and executive orders have called for the delivery of more nuclear power for clean, reliable energy on accelerated timelines, and this is how it’s done.”
Per the company, the PDC report establishes a regulatory framework for future reactor licensing and design activities, and once approved, effectively streamlines Oklo’s deployment of advanced reactors by reducing unnecessary steps in the licensing process.
In a note published on Monday, Barclays analysts wrote that “government approval of each step of the process is one of the largest moats in the space,” especially considering the “prolonged, expensive, and complex” regulatory framework under the NRC.
Oklo is up 65% in the past month, riding a wave of investor enthusiasm for clean power plays as the market anticipates a surge in AI-related energy demand. Earlier this morning, shares were under pressure after BofA cut the stock to “neutral” from “buy.”
Separately, the US Nuclear Regulatory Commission accepted Oklo’s Principal Design Criteria topical report “in just 15 days, compared to the typical 30–60 days following submission,” the company shared in a press release, noting that “recent legislation and executive orders have called for the delivery of more nuclear power for clean, reliable energy on accelerated timelines, and this is how it’s done.”
Per the company, the PDC report establishes a regulatory framework for future reactor licensing and design activities, and once approved, effectively streamlines Oklo’s deployment of advanced reactors by reducing unnecessary steps in the licensing process.
In a note published on Monday, Barclays analysts wrote that “government approval of each step of the process is one of the largest moats in the space,” especially considering the “prolonged, expensive, and complex” regulatory framework under the NRC.
Oklo is up 65% in the past month, riding a wave of investor enthusiasm for clean power plays as the market anticipates a surge in AI-related energy demand. Earlier this morning, shares were under pressure after BofA cut the stock to “neutral” from “buy.”
