Oklo (OKLO) Stock Jumps on New Partnership and Bullish Analyst Rating
Shares of Oklo (NYSE: OKLO), a small modular reactor (SMR) developer, are surging today following two positive developments: a new partnership with a Swedish SMR developer and a bullish analyst rating from Barclays. As of 11:04 a.m. ET, Oklo's stock is up 7.4%.
Strategic Partnership with Blykalla AB
Oklo announced a strategic partnership with Blykalla AB, a Swedish developer of SMRs. This collaboration aims to expand Oklo's presence in Europe. The partnership will focus on SMR technology collaboration, supply chain coordination, and regulatory insights. Oklo will also invest approximately $5 million in Blykalla's upcoming investment round.
Barclays Initiates Coverage with Overweight Rating
Barclays has initiated coverage of Oklo stock with an "overweight" rating and a price target of $146. According to The Fly, Barclays views Oklo as a "levered way" to gain exposure to the SMR industry, given that the company develops, owns, and operates its SMRs, also known as Aurora powerhouses. This approach can potentially contribute to strong cash flows. Barclays also highlighted Oklo's 14-gigawatt backlog of nonbinding agreements as a positive factor.
Analyst Target and Market Reaction
Based on Oklo's previous closing price of $110.53, the $146 price target from Barclays suggests a potential upside of over 32%. The market has reacted positively to this news, driving Oklo's stock higher.
Potential Risks and Alternative Investments
While the Barclays price target is encouraging, investors should exercise caution. Analysts often have shorter investing timeframes than long-term investors. Oklo still faces risks, including the lack of a design approved by the U.S. Nuclear Regulatory Commission. Investors seeking to mitigate risk may want to consider other nuclear energy stocks.
Consider Alternatives
Before investing in Oklo, investors may want to consider other opportunities. According to The Motley Fool Stock Advisor analyst team, there may be 10 better stocks for investors to buy now.
