Texas Capital Securities has initiated coverage of Oklo (NYSE:OKLO) with a Buy recommendation and set a price objective of $138.00, according to the firm's research released on Tuesday. That target implies a material upside from the stock's most recently noted market price of $85.27, though InvestingPro information indicates the share price may exceed the platform's Fair Value estimate.
The firm frames Oklo as a leading avenue for investors bullish on advanced nuclear solutions, centering its view on the company's Aurora reactor architecture. Aurora is described as a sodium-cooled fast neutron reactor that draws on technical knowledge accumulated from the Experimental Breeder Reactor-II. Texas Capital cites several design advantages for Aurora, including walk-away safety features, high-efficiency power output, the ability to colocate generation with concentrated demand centers, and a potential pathway to repurpose legacy spent nuclear fuel as an energy source.
From a financial perspective, InvestingPro data show Oklo carries a market capitalization of $13.37 billion. The company is not currently profitable on a trailing-twelve-month basis, with a negative EPS of -$0.58. InvestingPro also flags Oklo's historical pattern of high price volatility, a trait the research note says investors should weigh alongside Oklo's balance-sheet posture, which the firm characterizes as having more cash than debt.
Beyond its core reactor program, Oklo is advancing related nuclear capabilities. The firm is developing fuel reprocessing technology and radioisotope production, the latter work being pursued through its Atomic Alchemy subsidiary. Texas Capital views this ecosystem of products and services as complementary to the reactor business and potentially accretive to the company's value over time.
Texas Capital's initiation presents Oklo as a relatively well-understood advanced reactor design with projected economics that the firm expects to compete with other firm generation sources. The research note describes a synergistic business model that could create additional commercial avenues as development progresses.
Recent commercial and government developments
Oklo has recently been involved in several significant commercial and governmental agreements. The company announced a binding deal with Meta to develop a phased 1.2 GW advanced nuclear campus; that arrangement includes customer prepayments intended to help finance early-stage development. The Meta agreement has prompted divergent analyst responses: BofA Securities upgraded Oklo from Neutral to Buy and raised its price target to $127.00, while UBS retained a Neutral rating with a $95.00 target and stressed the long-term timeline for the project. Wedbush reiterated an Outperform rating with a $150.00 price target and flagged Oklo's role in Meta's broader ambitions to deploy up to 6.6 gigawatts of new nuclear energy projects.
On the government front, Oklo reached an agreement with the U.S. Department of Energy to support a radioisotope pilot plant. That pilot facility will be operated by Oklo's Atomic Alchemy Inc., marking a movement from planning toward active execution under DOE authorization.
Collectively, the analyst initiation, strategic commercial partnerships, and the DOE arrangement illustrate Oklo's expanding footprint within the advanced nuclear sector while also highlighting the mixed signals investors face when balancing technical promise, financing structures such as customer prepayments, and current profitability metrics.