BTIG analyst Gregory Lewis has reaffirmed a neutral outlook on Oklo Inc. stock by issuing a Hold rating. This decision comes in light of several factors impacting the company’s current standing and future trajectory.
Oklo is progressing with its first Aurora power plant, having completed key site characterization work, which marks a significant advancement towards obtaining necessary regulatory approvals. Despite this positive development, the path through the regulatory landscape remains intricate and prolonged. The recent ADVANCE Act may help lower licensing costs, but the overall schedule for approvals and construction could still stretch out considerably.
A notable challenge for Oklo is its dependence on High-Assay Low-Enriched Uranium (HALEU) fuel, which is currently sourced from limited suppliers. Although Oklo has established a Memorandum of Understanding with Centrus aimed at future fuel supply, the commercial HALEU supply chain is still evolving. This raises questions about the scalability of production as the company moves forward.
Additionally, while Oklo’s involvement in defense-related projects may open up future avenues, the broader landscape for deploying commercial reactors is expected to expand significantly only by the 2030s. These mixed signals lead to the conclusion of a Hold rating, as the company’s prospects are promising yet accompanied by notable uncertainties.
Complementing this outlook, Citi also issued a Hold rating on the stock, setting a price target of $30.00. Over the past six months, Oklo’s stock has observed a moderate upward shift, climbing from $23.080 to $32.030, which represents a 38.78% increase.
The ongoing developments at Oklo Inc. highlight a delicate balance between promising advancements and the challenges that lie ahead. Investors may find reassurance in the company’s commitment to improving its operations and navigating the complex regulatory environment. As the energy sector evolves, Oklo’s future will undoubtedly be shaped by its innovation and strategic partnerships.