On Thursday, B.Riley initiated coverage on Oklo Inc. (NYSE: OKLO) stock with a Buy rating and a $10.00 price target. The firm's positive outlook is based on the potential of Oklo's advanced nuclear technology to attract customer interest and provide carbon-free power with beneficial economics for end users.
Oklo, which is pursuing an owner-operator model, plans to sell power directly to customers through long-term contracts, a strategy that differentiates it from traditional nuclear reactor developers. This model is expected to offer Oklo several operational and regulatory advantages, including the potential for reduced approval timelines and regulatory costs with the Nuclear Regulatory Commission (NRC).
The company's innovative approach allows it to apply for a combined license application (COLA) for design, construction, and operations simultaneously. This streamlined process could lead to quicker NRC approvals compared to the standard procedure followed by large nuclear reactor developers who typically license their designs to utilities.
Oklo has demonstrated progress in building its customer base, with its customer pipeline nearly doubling year-over-year. As of August 2024, the pipeline has grown from approximately 700 megawatts (MW) in July 2023 to 1,350 MW. This significant increase indicates a growing interest in Oklo's nuclear technology solutions.
In other recent news, Oklo Inc. has reported its quarterly financial results, revealing its operational and financial status. The company has also entered into a Preferred Supplier Agreement with Siemens Energy to further commercialize its advanced fission technology. This collaboration is expected to enhance the reliability and performance of Oklo's powerhouses.
Additionally, Oklo has made significant progress in nuclear fuel recycling technology, supported by a $5 million cost-share award from the U.S. Department of Energy's Advanced Research Projects Agency-Energy. This advancement is anticipated to significantly reduce nuclear waste and fuel costs.
Seaport Global Securities and Citi have both initiated a neutral stance on Oklo stock, highlighting potential challenges including regulatory hurdles and concerns related to fuel procurement and management. The outcome of Oklo's licensing process with the Nuclear Regulatory Commission is seen as a crucial factor for the company's future business development.
Oklo has also filed a registration statement with the U.S. Securities and Exchange Commission for over 62 million shares of common stock, previously unregistered for resale. These are the recent developments for Oklo Inc., a company specializing in electric services and advanced fission technology.
InvestingPro Insights
As Oklo Inc. (NYSE: OKLO) garners attention with its innovative nuclear technology and owner-operator model, it's important to consider various financial metrics and market behaviors that could influence investor decisions. According to the latest data from InvestingPro, Oklo holds a market cap of approximately $759.44 million, with a notably high price volatility. This aligns with the InvestingPro Tip that the stock generally trades with high price volatility, which could be a consideration for investors looking for stable returns.
Furthermore, the company's stock price has experienced a significant decline over recent months, with a three-month price total return of -37.11% and a six-month price total return of -42.67%. This trend is underscored by another InvestingPro Tip indicating the stock has taken a big hit over the last six months. Despite these challenges, Oklo's liquid assets exceed its short-term obligations, which may provide some reassurance regarding the company's ability to manage its immediate financial responsibilities.
For those interested in a deeper analysis, InvestingPro offers additional tips on Oklo Inc., providing a comprehensive look at the company's financial health and market performance. With these insights, investors can make more informed decisions aligned with their investment strategies.
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