Daiwa Securities upgrades Oklo stock rating to Outperform on elevated power prices

Investing.com - Daiwa Securities upgraded Oklo (NYSE:OKLO) from Hold to Outperform on Friday, July 25th, 2025, while significantly raising its price target to $86.00 from $58.00. The stock, currently trading at $75.50, has shown remarkable momentum with a 255% gain year-to-date and a 20% surge in the past week alone, according to InvestingPro data.The upgrade reflects Daiwa’s increasingly positive outlook on Oklo’s business model, citing elevated power prices and policy incentives as key factors supporting the more bullish stance.The new price target represents a substantial 48% increase from the previous target and maintains the same 6.0x price-to-sales ratio valuation metric used in the firm’s bull case scenario forecasts.Daiwa identified potential downside risks to its upgraded outlook, specifically noting possible delays in Nuclear Regulatory Commission (NRC) approval and worse-than-expected competition in the advanced nuclear reactor industry.Oklo operates in the advanced nuclear reactor sector, developing next-generation nuclear power technologies.In other recent news, Oklo Inc. announced the completion of the U.S. Nuclear Regulatory Commission’s pre-application readiness assessment for its first commercial Aurora powerhouse project at Idaho National Laboratory. The assessment revealed no significant gaps that would impede the acceptance of the application, which is a crucial step for Oklo as it moves forward with its nuclear technology plans. Additionally, Oklo has selected Kiewit Nuclear Solutions Co. as the lead constructor for this project, with pre-construction set to begin in 2025 and commercial operations expected between late 2027 and early 2028. In another development, Oklo has formed a strategic alliance with Liberty Energy to develop integrated power solutions combining Liberty’s natural gas generation with Oklo’s nuclear technology. This partnership aims to meet immediate power needs and establish a pathway for zero-carbon baseload power. Citi has also raised its price target for Oklo to $68 from $30, reflecting the firm’s updated model that incorporates Oklo’s larger reactor design. This increase suggests a more favorable Net Present Value (NPV) for the company. These developments highlight Oklo’s progress and strategic initiatives in the nuclear energy sector.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.