Oklo Stock Rises as BofA Initiates Coverage with a Buy Rating; Here What’s Driving the Optimism

Oklo (OKLO) stock rose about 2% on Friday at the time of writing, after Bank of America reinitiated coverage of the small modular nuclear reactor company with a Buy rating. Analyst Rinny Singh assigned a price target of $80 to OKLO stock, calling it a “potential early leader in small modular reactors.”

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Here’s Why BofA Is Bullish on OKLO Stock

Singh believes that Oklo’s differentiated, vertically integrated business model, which involves developing, owning, and operating its reactors, positions it as an early frontrunner in the small modular reactors (SMR) market. Such a model helps Oklo secure favorable project economics by owning its reactors and winning long-term contracts with a focus on energy-intensive customers, such as data centers, industrial users, and defense industries, which require behind-the-meter (BTM) power.

Additionally, early commercial validation reinforces Singh’s confidence in Oklo’s growth potential. Specifically, Singh noted that the company has secured a nearly 1.2 GWe binding power deal with Meta Platforms (META) and built a pipeline of more than 14 GWe under non-binding customer agreements, making it one of the largest opportunities in the SMR sector and indicating robust demand for the reactors.

“With the demonstration reactor on track and hyperscalers agreements, we see a compelling advantage in capturing this growing market,” concluded Singh.

Meanwhile, earlier this week, Wolfe Research analyst Steve Fleishman initiated coverage of Oklo stock with a Hold rating. While Fleishman noted Oklo’s strong position in the SMR space, he contends that execution on costs and timelines will be critical for the company. Fleishman also cautioned about the strong competition from the partnership between X-Energy (XE) and Amazon (AMZN).

Is OKLO Stock a Good Buy?

Currently, Wall Street has a Moderate Buy consensus rating on Oklo stock based on 10 Buys and seven Holds. The average OKLO stock price target of $90 indicates 35.5% upside potential from current levels.