TLDR
- Bank of America upgrades Oklo (OKLO) to Buy rating with price target of $127
- Nuclear technology firm secures 1.2 gigawatt campus development agreement with Meta
- Meta provides $25 million prepayment for first phase covering 150 megawatts
- Analyst views deal as transition from concept stage to execution phase
- 2036 revenue projections increase to $5.9 billion from previous $5.5 billion estimate
Oklo stock received a boost Wednesday as Bank of America upgraded the nuclear technology company to Buy. The rating change from Neutral comes after Oklo secured a binding deal with Meta Platforms.
The partnership calls for developing a phased 1.2 gigawatt nuclear campus. BofA analyst Dimple Gosai raised his price target to $127 from $111.
Shares climbed more than 4% in premarket trading following the announcement. The new target represents potential upside of 41% from current trading levels.
Gosai highlighted the deal as evidence Oklo is moving from theoretical concepts to actual execution. The Meta commitment provides what he calls “tangible proof of execution and counterparty commitment.”
Meta has put real dollars behind the partnership. The tech company prepaid $25 million for the initial development phase.
Financial Impact and Projections
The prepayment covers approximately 150 megawatts of capacity. These funds will support fuel procurement, site preparation, and early development work.
The structure allows Oklo to begin operations before finalizing power purchase agreements and licensing approvals. Gosai described this approach as meaningfully de-risking the business model.
Bank of America updated its financial projections to reflect the Meta partnership. The firm takes a conservative view, assuming four development phases.
The model treats only 30% of the total 1.2 gigawatts as incremental capacity. Despite this cautious stance, revenue forecasts increased.
BofA now projects 2036 revenue of $5.9 billion compared to the previous $5.5 billion estimate. The revision stems from the Meta deal and expansion in peer company valuations.
Market Response and Analyst View
Gosai acknowledged the near-term megawatt contribution remains modest. However, the deal addresses a key investor concern about project execution.
Questions persist around PPA timing, refundability terms, and potential equity issuance. Investors continue monitoring these factors closely.
Recent concerns about Switch’s geothermal contracts also came up. Gosai clarified that the geothermal deal involves about 13 megawatts starting around 2030.
This separate agreement doesn’t impact the roughly 12 gigawatts of potential capacity under the Oklo-Switch framework. The arrangement reflects Switch’s multi-technology power strategy.
Oklo currently trades at $89.71 per share with a market capitalization of $14.02 billion. The stock’s 52-week range extends from $17.42 to $193.84.
Wall Street analysts maintain a Moderate Buy consensus on the shares. The average price target across analysts stands at $103.20.
Coverage includes two Strong Buy ratings, ten Buy ratings, six Hold ratings, and three Sell ratings. Bank of America’s upgrade strengthens the bullish case.
Institutional ownership accounts for roughly 85% of shares outstanding. Recent insider activity includes CFO Richard Craig Bealmear selling 69,841 shares in December at $78.40 each.
The price target increase primarily reflects peer multiple expansion and incremental revenue from the Meta agreement. Gosai’s analysis emphasizes the importance of execution proof in the advanced nuclear sector.
Meta’s prepayment structure represents a new model for funding nuclear development while regulatory processes advance.
