X-Energy’s (XE) shares hitched another 4% gain early Wednesday as more analysts heaped praise on the Amazon (AMZN)-backed company’s edge in the race to develop small modular reactors (SMRs). However, shares in SMR rivals Oklo (OKLO) and NuScale Power (SMR) — which closed more than 4% lower on Tuesday — also picked up during the pre-market session.
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X-Energy was founded in 2009 by billionaire entrepreneur Kam Ghaffarian and prominent nuclear physicist Eben Mulder as an energy company focused on clean energy through nuclear reactor technology. The Maryland-based company went public last month, jumping by about 27% on its first trading day on Nasdaq.
Since its debut, however, X-Energy’s shares have dropped more than 8% and have fallen by more than 14% over the past five days. Notably, analysts’ bullish ratings this week have helped to lift the shares.
‘Most Strategically Positioned Company’
Late Tuesday, Cantor Fitzgerald analyst Derek Soderberg joined the ranks of analysts that kicked off coverage of X-Energy, expressing confidence in the business. Derek called XE a Buy and set a price target of $38, implying approximately 42% upside.
The analyst noted that the SMR company is the “most strategically positioned company” in the U.S. advanced nuclear market. Derek cited X-Energy’s generation IV high-temperature gas-cooled reactor and control of the supply chain for its proprietary fuel business for the bullish comments.
He added that X-Energy operates the first and only commercial advanced nuclear fuel facility to have received a Category II commercial license from the U.S. Nuclear Regulatory Commission. Furthermore, the Cantor Fitzgerald analyst believes that X-Energy’s “blue chip” customer base and diversified revenue stream provide an extra edge to the company.
‘A Frontrunner’
X-Energy currently has nuclear energy deployment agreements with Amazon, specialty chemical producer Dow (DOW), and British energy services giant Centrica (CPYYY).
Cantor Fitzgerald’s comment comes as JPMorgan (JPM) has also described X-Energy as “a frontrunner” in the SMR race, while Guggenheim called the firm a “pure-play” leader in the market.
Is X-Energy Stock a Good Buy?
On Wall Street, analysts have a Moderate Buy consensus rating on X-Energy’s shares. This is based on five Buys and two Holds issued this week.
However, the average XE price target of $36.67 suggests about 37% upside in the months ahead.
