TLDR
- Oklo (OKLO) receives Buy rating from Bank of America with $127 price target, up from $111
- Meta Platforms partnership delivers 1.2 gigawatt nuclear campus development deal
- $25 million prepayment from Meta funds fuel procurement and early development work
- BofA analyst calls deal proof of shift from concept to execution phase
- Revenue forecast for 2036 increases to $5.9 billion from $5.5 billion
Bank of America shifted its stance on Oklo stock Wednesday, upgrading shares to Buy from Neutral. The move follows a binding agreement with Meta Platforms to build a 1.2 gigawatt nuclear campus.
Analyst Dimple Gosai raised the price target to $127 from $111. Shares responded with a 4% jump in premarket trading.
The upgrade reflects what Gosai calls a transition from “concept” to “execution.” Meta’s commitment provides concrete evidence that advanced nuclear projects can move forward.
Meta has already transferred $25 million for phase one development. This prepayment covers approximately 150 megawatts of the total capacity.
The funds support fuel procurement, site preparation, and initial development activities. Work can begin before final power purchase agreements and licensing approvals are complete.
Financial Projections Climb
BofA updated its long-term financial model following the Meta announcement. The firm conservatively assumes four development phases.
Only 30% of the 1.2 gigawatts counts as incremental to previous projections. Even with this cautious approach, revenue estimates climbed.
The 2036 revenue forecast now stands at $5.9 billion, up from $5.5 billion. The increase stems from the Meta deal and expanding peer multiples.
Gosai acknowledged the near-term megawatt contribution remains small. But the deal addresses investor questions about execution capability.
De-Risking the Business Model
The prepayment structure offers what Gosai calls meaningful de-risking for the power business. Meta’s financial commitment demonstrates counterparty seriousness.
Investors continue watching several factors. PPA timing, refundability mechanics, and equity issuance remain focal points.
Recent concerns about Switch’s geothermal contracts also received attention. Gosai explained the geothermal agreement involves roughly 13 megawatts starting around 2030.
This doesn’t affect the 12 gigawatts of potential capacity under the Oklo-Switch framework. Switch pursues a multi-technology approach consistent with industry trends.
Market Position and Outlook
Oklo shares traded at $89.71 Wednesday with a $14.02 billion market cap. The stock has ranged from $17.42 to $193.84 over the past year.
Wall Street maintains a Moderate Buy consensus rating. The average price target sits at $103.20 across covering analysts.
The breakdown includes two Strong Buy ratings, ten Buy ratings, six Hold ratings, and three Sell ratings. Bank of America’s upgrade adds to the bullish camp.
Institutional investors control approximately 85% of outstanding shares. Recent insider sales include CFO Richard Craig Bealmear’s December transaction of 69,841 shares at $78.40.
The price target of $127 implies 41% upside from current levels. BofA attributes the increase primarily to peer multiple expansion and incremental revenue from the Meta partnership.
Meta’s willingness to prepay for nuclear development represents a validation point for the advanced nuclear sector. The structure allows progress while regulatory processes continue.
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