Oklo Stock Gains as Citi Raises Price Target on Promising Radioisotope Business

Oklo Inc. (NYSE:OKLO) witnessed its stock trading higher today, buoyed by a positive assessment from Citi. The upward revision reflects growing confidence in the company's strategic direction and its burgeoning radioisotope business.

The markets reacted favorably to Citi analyst Vikram Bagri's updated outlook, with Oklo shares trading 0.8% higher, reaching $90.08. Bagri increased Citi's price target to $95, up from the previous $68, while maintaining a Neutral rating on the stock.

This adjustment followed Oklo's Q3 earnings report and a meeting with the company's management, signaling an optimistic view of Oklo's execution across its various initiatives. The increased price target specifically factors in the potential of Oklo's radioisotope business, recognizing its emerging value proposition.

This positive sentiment contrasts with a recent price target reduction from Goldman Sachs, which lowered its target to $106 from $117, citing higher-than-anticipated operating expenses in the third quarter. Despite this adjustment, Goldman Sachs maintained a Neutral rating, acknowledging Oklo's reaffirmed 2025 guidance for cash used in operating activities, projected to be between $65 million and $80 million. Oklo's robust cash position, bolstered to $1.2 billion after raising $526 million through its at-the-market program, provides substantial financial flexibility to support key projects like the Aurora Powerhouse and the Atomic Alchemy business.

In July, B. Riley Securities upgraded Oklo's price target significantly, moving it to $58 from $27 and maintaining a Buy rating. This upgrade triggered a notable 21% surge in Oklo's stock price, driven by optimism surrounding the company's involvement in the AI and nuclear sectors, particularly in relation to Project Stargate, a venture focused on significant investments in U.S. AI infrastructure. Wedbush also expressed increased confidence in Oklo, raising its price target from $75 to $80 while maintaining an Outperform rating.

However, Bank of America adopted a more cautious stance, reducing its price target for Oklo from $117 to $111, retaining a Neutral rating. This revision suggests a more tempered expectation, with the new target implying a potential upside of approximately 6.7% from the current price levels. Conversely, Cantor Fitzgerald set a more bullish tone, raising its price target to $122 from $84 and maintaining an Overweight rating. Cantor Fitzgerald highlighted Oklo's small modular reactor technology as a crucial enabler of efficient and cost-effective energy solutions for the rapidly expanding AI economy. While Oklo has not yet achieved profitability over the past year, its strong cash reserves provide a solid foundation for its ongoing development plans.

William Blair reiterated its Outperform rating on Oklo, emphasizing the company's strong financial standing, with $920 million on its balance sheet and various potential funding avenues, including support from the Department of Energy's Loan Programs Office. Furthermore, Oklo is developing a “Pluto” reactor designed to utilize plutonium as fuel, potentially mitigating supply chain risks associated with High-Assay Low-Enriched Uranium (HALEU).

While some firms express strong confidence in Oklo's strategic initiatives and financial strength, others remain more conservative, citing concerns about operating expenses and potential delays. There has been a huge outperformance in the name YTD, up 305%, yet OKLO currently trades more than 50% below highs. Volatility has been the word of the year here.