UBS initiates Oklo stock with Neutral rating, $65 price target

Published 20/08/2025, 10:10
UBS initiates Oklo stock with Neutral rating, $65 price target

Investing.com - UBS initiated coverage on Oklo (NYSE:OKLO) with a Neutral rating and a $65.00 price target on Wednesday, closely aligned with the stock’s current trading price of $65.41. According to InvestingPro data, analyst targets for the stock range from $14 to $90.

The investment bank cited Oklo’s substantial total addressable market (TAM) and profit potential of approximately $75 billion per year with approximately 70% EBITDA margins as positive factors supporting its valuation.

UBS balanced these positive elements against several risk factors, including the early-stage nature of small modular reactor (SMR) technology and inherent risks in nuclear project development.

The firm also noted elevated valuations across the broader nuclear sector as a factor in its neutral stance on the stock.

UBS stated it remains "cautiously optimistic" on the potential for a broader U.S. nuclear infrastructure build-out while awaiting further commercialization progress from Oklo.

In other recent news, Oklo Inc. has been selected for three U.S. Department of Energy reactor pilot projects, marking a significant development for the company and its subsidiary, Atomic Alchemy Inc. The projects are part of the newly established Reactor Pilot Program, aiming to demonstrate criticality in at least three test reactors by July 4, 2026. In addition to this, Oklo has secured several strategic partnerships, including a memorandum of understanding with Korea Hydro & Nuclear Power and a collaboration with Hexium for advanced nuclear projects and laser-based enrichment for high-assay low-enriched uranium production.

In terms of analyst ratings, Wedbush has maintained its Outperform rating on Oklo, citing confidence in the company’s long-term vision, especially with the focus on AI Revolution data center development powered by nuclear energy. The firm also raised its price target for Oklo to $80 following the completion of Phase 1 of Oklo’s Nuclear Regulatory Commission readiness assessment. Meanwhile, B.Riley reiterated its Buy rating with a $58 price target following Oklo’s second-quarter earnings report. These recent developments highlight Oklo’s strategic advancements and the confidence analysts have in its future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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