Oklo Inc (NYSE:OKLO) shares are trading lower on Thursday, pulling back from an initial surge following a positive initiation from Canaccord Genuity.
What To Know: Canaccord Genuity analyst George Gianarikas initiated coverage on Oklo with a Buy rating and price target of $175. The analyst believes a new nuclear age is emerging despite concerns around a potential AI bubble coupled with the stock’s exceptional recent performance.
“The world needs greater supplies of clean, baseload power; while rising AI demand may influence the growth trajectory, we anticipate strong long-term demand for nuclear energy regardless,” Gianarikas stated in the initiation note.
The analyst highlighted Oklo’s vertically integrated approach as a key differentiator, noting the company plans to build, own and operate its reactors rather than simply selling reactor designs. This business model provides direct access to nuclear power for customers while reducing upfront costs and risks.
Oklo’s reactor technology leverages liquid sodium-cooled fast reactor designs with proven passive safety features demonstrated by the Experimental Breeder Reactor-II (EBR-II). The company’s reactors range from 15 MW to 75 MW output, with modular scalability allowing customized energy solutions for varying customer needs.
Gianarikas noted Oklo’s reactor buildouts are likely to be financed mainly with debt and supported by investment tax credits.
“This financing mix could help bolster long-term returns on capital with, potentially, minimal requirements for additional equity,” he wrote.
The company’s three-part HALEU fuel supply strategy includes near-term government-awarded fuel, mid-term contracted supply from Centrus and long-term vertically integrated spent fuel reprocessing. Oklo’s current customer pipeline exceeds 14 GW, spanning data center developers, energy companies and the U.S. military.
Canaccord Genuity’s $175 price target is based on a discounted cash flow model stretching to 2050, with long-term growth anticipated around 6%.
OKLO Analysis: Oklo stock shows a bearish trend as it tests support near the recent lows. Resistance can be found at $141.55, the high for the session, as well as the 52-week high of $147.18.
Thursday’s volume is significant at approximately 11.7 million shares, suggesting strong interest and participation in the current price movement.
The RSI is currently at 42.30, indicating the stock is neither overbought nor oversold, but approaching the lower threshold. The MACD shows a bearish crossover, with the MACD line at -0.45 and the signal line at -0.30, confirming downward momentum. A descending triangle pattern may be forming in the near term, with the upper trend line around $140 and the lower trend line at $132, suggesting a potential breakdown if support fails.
Benzinga Edge rankings show weak fundamentals, but have assigned the stock an exceptionally high Momentum score of 99.61/100. Oklo is trading significantly above both the 50-day moving average at $90.95 and the 200-day moving average at $52.10, indicating a strong longer-term trend.
OKLO Price Action: Oklo shares were down 1.72% at $132.41 at the time of publication on Thursday, according to Benzinga Pro.
Read Next:
- Oklo Emerges As A ‘New Energy Leader,’ Says Bullish Analyst
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