Bouncing back from the 4.6% decline that they suffered during the first week of June, shares of Oklo (OKLO +4.05%) are off to an auspicious start this week. After learning of an analyst's positive outlook on the nuclear power upstart, investors clearly felt motivated to click the buy button on shares of the company developing small modular reactors.
As of 3:17 p.m. ET, shares of Oklo are up 6.4%.
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Charged up about a bullish price target
Upgrading it to buy from neutral, Seaport Research assigned a $71 price target on Oklo stock, according to The Fly. Based on Oklo's closing price of $50.29 on Friday, Seaport's price target implies upside of more than 41%.
Seaport's more bullish opinion on Oklo is predicated on the fact that the company is now eligible for awards from the Defense Innovation Unit's Advanced Nuclear Power for Installations program, an encouraging sign that the company is more likely to win necessary approvals from the Nuclear Regulatory Commission.
Oklo is developing small modular reactors that represent cleaner and more efficient nuclear energy solutions than traditional nuclear power plants.
NYSE: OKLO
Key Data Points
Is now a good time to buy Oklo stock?
While Seaport Research sees an ample amount of upside to Oklo stock, investors should remember that the company is still not generating revenue. Sure, the company's technology is intriguing, and the fact that OpenAI founder Sam Altman was at the helm of Oklo as CEO from July 2021 to May 2024 is encouraging, but there's still a significant amount of risk tied to the stock.
At this point, therefore, only those with significant risk tolerances should weigh a position in Oklo stock, while those who are committed to nuclear energy exposure but looking to mitigate risk will want to consider a more established company.
