Shares in small modular reactor producers Oklo (OKLO) and NuScale Power (SMR) closed Thursday’s trading roughly 11% and 10% higher, respectively. The rally appears to follow comments by the United Nations’ climate secretary that the U.S.-Iran war is “supercharging” the push for renewable and clean energy as oil prices continue to soar.
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While SMRs are not generally considered renewable energy, as they rely on finite fuel sources such as uranium, they are designed to provide clean energy. They can be factory-assembled and transported to sites that need power, potentially offering better cost efficiency than conventional large nuclear power plants.
Simon Stiell, the executive secretary of the United Nations Framework Convention on Climate Change, described renewables as being safer, cheaper, and cleaner while speaking at the International Energy Agency in Paris. He described renewables as not vulnerable to chokepoints such as narrow shipping straits or the outcome of geopolitical conflicts.
What Analysts Are Saying about Oklo and NuScale Power
Meanwhile, the rally comes as some analysts continue to back Oklo, noting that the U.S. nuclear policy is increasingly aligned with its growth ambitions. Tigress’ analyst Ivan Feinseth recently went bullish on the startup, noting that Oklo is a “differentiated way to play the emerging U.S. advanced nuclear and SMR build-out.”
Feinseth also praised Oklo’s own-and-operate business model. In a sharp departure, B. Riley analyst Ryan Pfingst recently noted that NuScale Power’s business model puts it “at the mercy of customers in terms of the pace of execution.”
As a nuclear reactor technology company, NuScale Power licenses its technology to others and offers pre- and post-construction services.
Which Nuclear Stock Is the Better Buy?
Both SMR producers currently carry a Moderate Buy consensus rating from analysts. However, NuScale Power offers the bigger upside of approximately 31% based on an average price target of $16.30.
