Oklo stock holds steady as UBS maintains Neutral rating on fuel plans

Investing.com - UBS maintained its Neutral rating and $65.00 price target on Oklo (NYSE:OKLO) following the company’s announcement of plans to invest up to $1.68 billion in an advanced nuclear fuel center. The stock, currently trading at $69.79, has delivered an impressive 228% return year-to-date, though InvestingPro analysis suggests it may be overvalued at current levels.

On September 4, 2025, Oklo revealed its intention to construct a nuclear fuel recycling and fabrication facility in Oak Ridge, Tennessee, capable of producing high-assay low enriched uranium (HALEU) fuel.

The company expects to achieve first production of recycled fuel volumes by the early 2030s, with enough fuel recycling capacity to power up to 3GW of Oklo reactors at full run-rate.

UBS views establishing a fuel recycling capability as a significant upside opportunity for Oklo, with potential for the company to become a key fuel supplier for small modular reactor operators in the longer term.

The investment firm remains cautiously optimistic given the early-stage nature of Oklo’s fuel recycling build-out and the need for additional regulatory approvals from the U.S. Nuclear Regulatory Commission. While analyst consensus remains bullish with a 1.93 rating, InvestingPro subscribers can access 13 additional key insights about Oklo’s future prospects.

In other recent news, Oklo Inc. has announced plans to build a $1.68 billion nuclear fuel recycling facility in Tennessee, which is expected to create over 800 jobs. This facility will be the first privately funded operation of its kind in the United States, aimed at recycling used nuclear fuel to produce fuel for fast reactors. Additionally, Oklo has updated its equity offering, indicating it may sell up to $140 million in new shares, following a previous issuance that generated approximately $400 million. BofA Securities has initiated coverage of Oklo with a Buy rating and set a price target of $92, highlighting the company’s build-own-operate model. Meanwhile, UBS has begun coverage with a Neutral rating and a $65 price target, noting Oklo’s significant total addressable market and profit potential. Furthermore, Oklo has partnered with ABB to establish a digital monitoring room at its headquarters, which will serve as an operator training and simulation center for its nuclear operations. This initiative is part of Oklo’s strategy to deploy its Aurora powerhouses, emphasizing automation and inherent safety features.

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