A “Best Alpha Opportunity,” Says Top Analyst About Oklo Stock

To say Oklo’s (NYSE:OKLO) first year on the stock market has gone well would be a bit of an understatement. The nuclear energy startup entered the public markets last May through a merger with a SPAC led by Sam Altman, CEO of OpenAI and its performance over the period has left the broader markets eating dust. The shares have gained over 550% since its market debut with 160% of those gains generated in 2025 alone.

For William Blair analyst Jed Dorsheimer, an analyst who ranks in the top 2% of Wall Street stock experts, it’s no wonder investors have gone doolally for this nuclear player. The analyst has argued that the sector offers the “best alpha opportunity for investors looking for exposure to the inflection in energy demand and infrastructure buildout.”

And for Dorsheimer, Oklo represents a standout opportunity in the advanced reactor space. Additionally, while an investment here involves scientific and execution risks, the 5-star analyst believes recent deregulatory actions under the Trump administration have significantly eased these concerns.

So, what is so unique here? Instead of selling its reactor designs to utility companies, Oklo differentiates itself by adopting a build-own-operate model. This approach sets the company apart in two ways. For one, it enables access to a streamlined regulatory process known as the custom combined construction and operating license approval (COLA), which is expected to cut the timeline from the traditional seven to nine years down to less than three. Second, this model allows Oklo to benefit directly from rising electricity prices, particularly the high premiums placed on clean, reliable baseload power – now approaching $100 per megawatt-hour. “Major technology companies are already signing direct power purchase agreements with utilities at these elevated rates, and Oklo can meet this demand by providing behind-the-meter nuclear power solutions,” Dorsheimer went on to explain.

Dorsheimer has also claimed that excessive regulatory barriers remain the greatest obstacle to the nuclear industry’s growth. For large-scale projects like Vogtle, he reckons regulatory costs at approximately $1,000 per kilowatt-hour – a burden that becomes even more pronounced for SMRs (small modular reactors) due to their smaller energy output and limited ability to spread those costs. However, he thinks the Trump administration making deregulation a “top priority” will significantly ease these constraints and “unburden the SMR opportunity.”

The administration’s focus on nuclear energy was underscored on May 23, when it issued four executive orders aimed at advancing the commercial nuclear sector. Notably, Oklo’s founder and CEO was invited to speak at the signing event. “We view these actions as the most consequential shift in energy policy of our lifetime, and we believe they will allow adoption of advanced reactor designs like Oklo’s,” Dorsheimer further said.

All that is to say Dorsheimer initiated coverage of Oklo with an Outperform (i.e., Buy) rating although the analyst has no fixed price target in mind. (To watch Dorsheimer’s track record, click here)

Looking at the consensus breakdown, based on a mix of 6 Buys and 3 Holds, the Street views this stock as a Moderate Buy. However, the gains have taken the shares right up to the $54.4 average target. It will be interesting to see whether analysts downgrade their ratings or update their targets shortly (See Oklo stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.