Analyst Vikram Bagri from Citi maintained a Hold rating on Oklo Inc (OKLO – Research Report) and decreased the price target to $30.00 from $31.00.
Vikram Bagri has given his Hold rating due to a combination of factors impacting Oklo Inc. The company is expanding its reactor design to a larger 75MW capacity to meet customer demands, which, while promising better plant economics, requires higher initial capital expenditure. This expansion does not necessitate changes in the licensing approach, but it does increase the financial burden in the short term.
Additionally, Oklo’s financial results for the fourth quarter showed a higher than expected operating loss, primarily due to increased research and development expenses. The company’s cash reserves have decreased, and there is an anticipation of significant cash use in operations for the upcoming fiscal year. These factors, coupled with the need for potential external capital before the first reactor is commissioned, contribute to the Hold rating, reflecting a cautious outlook on the stock’s near-term performance.
Bagri covers the Technology sector, focusing on stocks such as Enphase Energy, SolarEdge Technologies, and Canadian Solar. According to TipRanks, Bagri has an average return of -22.4% and a 30.08% success rate on recommended stocks.