Nuclear reactor startup Oklo’s (OKLO) losses from its operations widened by 164% year-over-year to $139.3 million at the end of 2025. However, banking giant HSBC (HSBC) believes the company has a clean balance sheet with “imminent first revenue.”
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Forget margin or options. Here's how the pros trade NVDAOn Wednesday, HSBC analyst Samantha Hoh initiated coverage of the stock with a Buy rating and set a price target of $96 that implies about 26% upside in the months ahead. Oklo’s shares closed Wednesday roughly 16% higher, even as the company’s new strategic nuclear energy deal with chip design giant Nvidia (NVDA) fueled more gains on Thursday afternoon.
HSBC Flags Oklo’s Business Model
For context, Oklo designs compact fast reactors that use high-energy neutrons to sustain nuclear fission and aim to use fuel more efficiently and produce cleaner energy than conventional light-water reactors. The startup’s main offering is the Aurora nuclear reactor, and it broke ground on the first one last September as it races to deliver its first plant by 2028.
In her assessment, Hoh pointed to Oklo’s “owner-operator” business model for its small modular reactors (SMRs) and how the company is “accelerating the integration of power, fuels, and isotope production.” The analyst also pointed to the company’s four projects with the U.S. Department of Energy’s Reactor Pilot Program and Fuel Line Pilot Program.
Oklo Is Debt-Free, Analyst Says
Specifically, the analyst noted that Oklo has no debt but boasts roughly $2.5 billion in cash and cash equivalents. She added that the startup expects to generate its first revenue later this year from the Idaho Radiochemistry Laboratory, a facility under the Idaho National Laboratory where Oklo is building its first Aurora powerhouse.
Moreover, Hoh pointed out that Oklo currently relies on customer pre-payments and third-party capital commitments to finance its operations. However, she believes the company should be able to expand its financial options longer term, including through tapping into long-term power purchase agreements and federal loans.
Is Oklo a Good Stock to Buy?
Across Wall Street, Oklo’s shares continue to carry a Moderate Buy consensus rating from analysts. This is based on nine Buys and five Holds assigned over the past three months.
However, the average OKLO price target of $91.50 implies roughly 20% upside.
