Bank of America analysts initiated coverage early Tuesday of small modular reactor, or SMR, nuclear power stock Oklo (OKLO), which is backed by OpenAI CEO Sam Altman, as the firm continues to see nuclear well placed to deliver in the AI-dominated stock market.
Analyst Dimple Gosai handed Oklo a bullish buy rating with a 92 stock price target, suggesting the stock has 30% upside. Oklo stock advanced around 3% prior to Tuesday's stock market open. On Friday, Oklo shares jumped 4.8%, making a strong move from its 50-day moving average.
The nuclear energy stock could be considered actionable as it retakes the 21-day exponential moving average after rebounding from its 50-day line. However, there is risk involved. Oklo stock is down around 7% in August but has revved 235% higher in the 2025 stock market. On Aug. 11, Oklo reported a loss of $28 million in Q2, or 18 cents per share, with no sales. The company ended the second quarter with cash and equivalents of $226.8 million, up 133% from year-end 2024.
The startup aims to bring its first commercial SMR online in late 2027 or early 2028. No commercially operating SMRs now exist, but a number of companies are developing the technology. SMRs aim to provide power at the site level, drastically reducing the time and cost of permitting, constructing and operating larger grid-based nuclear facilities.
Gosai wrote Tuesday nuclear energy continues to gain momentum. Bank of America believes Oklo is "well positioned to meet the rising energy needs of AI." The firm added Tuesday that of the roughly 50 SMR developers it tracks, Oklo has the largest publicly disclosed customer pipeline with more than 14 gigawatts, representing about 30% of the global pipeline.
Last week, UBS initiated coverage of Oklo with a neutral rating and 65 price target. UBS analysts wrote they were "cautiously optimistic" on the potential for a broader U.S. nuclear infrastructure build-out but awaits further commercialization progress. However, the firm believes there nuclear project development risks and that the stock's valuation is elevated relative to the broader nuclear space.
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As investors last week appeared to hedge bets on whether there is an AI bubble, several analysts initiated and changed coverage on nuclear stocks.
Ladenburg last week double downgraded Nano Nuclear Energy (NNE) to sell, from a previous buy, with a price target of 9, down from 51. This decision came after NNE reported its fiscal Q3 results. Ladenburg analysts hoped management would streamline its strategy and prioritize core initiatives, but the firm's takeaway was that the company instead continues promoting a broad, diversified model.
Meanwhile, Melius Research initiated coverage of S&P 500 nuclear stocks Constellation Energy (CEG) and Vistra (VST), giving both buy designations. The analysts handed CEG a 462 price target, while Vistra has a 295 price target. Melius Research analysts wrote that the introduction, adoption and acceleration of AI has transformed "energy & power" into an AI category and the market is in the early stages of a "power revolution" that is only in the early innings of shifting leadership toward a whole new group of winners.
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On Thursday, Bank of America also initiated coverage of NuScale Power (SMR) with a neutral rating and a 36 price target. The firm wrote that NuScale offers "a more de-risked fuel pathway" compared to SMR-focused peers, but that the company remains in the early commercialization stage and that the current valuation "already prices in significant future success."
Along with Oklo, fellow SMR-stock NuScale Power and Nano Nuclear Energy are down 28% and 12.6%, respectively, in August's stock market.
Among other nuclear-related plays, BWX Technologies (BWXT), the U.S. Navy's main nuclear reactor supplier, declined 6% last week. The stock has dropped around 14% since hitting an all-time high of 189.25 on Aug. 5 after reporting much better-than-expected second-quarter earnings and revenue.
Uranium miner Centrus Energy (LEU) ended last week up 1.7% on the strength of a 5.2% advance Friday. Similar to BWXT, Centrus enters Tuesday's stock market down 38% since roaring to record highs following earnings on Aug. 5.
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Canada-based uranium refiner Cameco (CCJ) lost slightly less than 1% last week. Cameco, which owns a 49% stake in nuclear reactor builder Westinghouse, also recently announced better-than-expected second-quarter earnings, with quarterly profit soaring 410%.
Other nuclear plays to watch in the space include GE Vernova (GEV), Uranium Energy (UEC), Lightbridge (LTBR) and Energy Fuels (UUUU).
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Oklo has a 91 Composite Rating out of a best-possible 99. The nuclear stock also has a perfect 99 Relative Strength Rating and a 47 EPS Rating.
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