Oklo Stock Jumps as BofA Calls Meta Deal a ‘Meaningful Step Forward’

Oklo’s (OKLO) shares climbed 5% early Wednesday after Bank of America (BofA) (BAC) turned bullish on the stock, calling the nuclear startup’s new deal with Meta (META) a “meaningful step forward.”

Earlier this month, Oklo ignited hope in its advanced nuclear technology after it disclosed that it has secured a long-term 1.2 gigawatt supply contract from Meta. The tech supermajor also tapped two other companies for nuclear energy; they are Vistra Energy (VST) and billionaire Bill Gates-backed TerraPower.

BofA Upbeat after Oklo’s ‘Modest’ Deal with Meta

Responding to the update, BofA analyst Dimple Gosai, who was previously bearish Oklo due to investor concern about the startup’s capital expenditure and the timing of its power purchase agreements with clients — upgraded Oklo from Hold to Buy.

Gosai raised her OKLO price target by 14% from $111 per share to $127, implying more than 41% upside. The analyst noted that while the capacity to be supplied is “modest,” the deal marks a “meaningful step forward” and offers concrete evidence of Oklo’s execution and its partner’s commitment.

Furthermore, the BofA analyst noted that Meta’s decision to invest capital years before the project comes online highlights how critical nuclear power has become as AI and data center energy needs ramp up.

Oklo’s Losses Widen

The analyst’s upbeat comment comes even as Oklo in its recent third-quarter results released in November reported a worse-than-expected net loss. Gosai previously said Oklo has made “constructive” progress by securing regulatory approvals, thereby reducing the risks associated with its fuel source.

Oklo, which remains unprofitable, broke ground on its first Aurora nuclear reactor plant in late September. The startup has said it is working to deliver its first nuclear power plant by 2028.

Is Oklo a Good Stock to Buy?

Across Wall Street, analysts’ consensus rating for Oklo remains a Moderate Buy. This is based on eight Buys and four Holds issued by 12 analysts over the past three months.

However, the average OKLO price target of $126.89 implies about 41% upside from current trading levels.

See more OKLO analyst ratings here.