Oklo is likely to gain even more steam as the nuclear energy firm leverages support from the federal government to accelerate its nuclear reactor business, according to HSBC. The bank is initiating coverage the stock with a buy rating. It also set a $96 price target on shares, implying 32.6% upside from Wednesday’s close. “With a total of four projects selected to participate in the Department of Energy’s (DOE) Reactor Pilot Program (RPP) and Fuel Line Pilot Program (FLPP), Oklo is positioned to leverage the new DOE-led licensing process for its 75 MW Aurora powerhouses and fuel foundry,” analyst Samantha Hoh wrote. “The result is an accelerated timeline for constructing and licensing new reactors, with Oklo leveraging its expertise in ancillary opportunities of nuclear fuel recycling and radioisotopes production.” She added that Oklo expects to achieve “criticality,” or begin generating nuclear energy, with its Aurora-INL and Groves isotope projects by July 4, 2026, meeting or beating expectations for the initiatives. It also is aiming to produce 150 megawatts in phase one of a 1.2 gigawatts power campus for Meta by around 2030. She also noted that Oklo has faced high upfront capital costs, but it has offset those with customer pre-payments and third-party investments. The firm is expecting to clock its first revenue later this year in connection with the Idaho Radiochemistry Laboratory. It should also be able to finance capex with multiple forms of financing and federal loans over the long term, enabling its business and stock to grow, according to HSBC. Despite its eye-watering start-up costs, Oklo has seen its shares surge roughly 210% over the past year. OKLO 1Y mountain Oklo shares have more than doubled over the past year. Oklo has a “clean balance sheet with imminent first revenue,” Hoh wrote. HSBC’s call falls in line with consensus on Wall Street. Of the 20 analysts covering Okta, 14 have a buy or strong buy on the stock, LSEG data shows.
