Oklo Shares Slammed After Downgrade

Oklo Downgraded as Analyst Cites Uncertainty Around Execution

The nuclear stock is no longer a buy, believes one professional tracking the company. He believes the next-generation nuclear energy specialist still has much to prove.

Oklo (OKLO 8.22%), which has gained popularity during a renewed wave of interest in nuclear power, stumbled on Monday after an analyst lowered his rating, citing doubts about the company’s ability to prove itself as a sustainable long-term business.

The broader market didn’t ignore the move—shares of Oklo fell 5% during the session, while the S&P 500 (^GSPC 1.18%) posted a 1% gain.

Analyst Turns Cautious

Before markets opened Monday, Craig-Hallum analyst Eric Stine issued a downgrade on Oklo, moving his rating from “buy” to “hold” with a price target of $59.

According to reports, the crux of Stine’s justification for this is that Oklo, which develops and operates next-generation nuclear-generating facilities, needs to make further progress. Management has been very ambitious in its anticipated timelines, and Stine believes it might not meet such projections.

Oklo has stated that it intends to deploy its first nuclear power-generating facility in Idaho by the end of 2027 or early 2028. However, the analyst pointed out that it hasn’t completed a proper application to be licensed by the U.S. Nuclear Regulatory Commission.

Reasons for Optimism

Those concerns are valid, certainly, but Stine also wrote that Oklo has notched some very tangible wins, not least its recent securing of a notice of intent to award (NOITA) from the Department of Defense for a project on an Alaska Air Force base.

That alone, in my view, makes Oklo a stock to watch just now. We should also bear in mind that nuclear is a form of energy generation very much in favor with the current presidential administration, and should therefore enjoy support from the highest levels of federal government.