Oklo Inc (NYSE:OKLO) is emerging as one of the most strategically positioned players in advanced nuclear, driven by its regulatory head start, diversified fuel strategy, and growing demand from hyperscalers.
Needham analyst Sean Milligan initiated coverage on Oklo with a Buy rating and a price forecast of $135.
Milligan argued that the company's regulatory advantages, diversified fuel strategy, and unusually large commercial pipeline position it as a front-runner in advanced nuclear.
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The analyst noted long-term build-own-operate (BOO) economics and fleet scale.
He highlighted potential upside once power purchase agreements (PPAs) and fuel-cycle revenues gain validation.
Milligan highlighted Oklo's momentum under Department of Energy (DOE) authorization, where the Aurora-INL project is advancing through the DOE Reactor Pilot Program.
This pathway allowed construction to begin ahead of full Nuclear Regulatory Commission (NRC) licensing, providing a faster, repeatable route for future units.
Milligan also emphasized Oklo's broad fuel strategy, which he calls the most diversified in advanced nuclear.
Early fuel needs are supported by DOE-supplied EBR-II material and up to 20 metric tons of plutonium.
Mid-term high-assay low-enriched uranium (HALEU) supply comes from partners including Centrus and Hexium.
Long-term supply will be anchored by the $1.68 billion Tennessee Advanced Fuel Center, giving Oklo the ability to recycle and fabricate metallic fuel at scale.
Milligan noted that Oklo's fast-reactor design can use recycled and impurity-bearing fuel that other technologies cannot, adding economic flexibility.
On the commercial front, the analyst cited more than 14 GW of customer interest—from hyperscalers, industrial users, and energy companies—including Switch's 12 GW master agreement and Equinix's 500 MW letter of intent with a $25 million prepayment.
He said converting these nonbinding agreements into PPAs is a key near-term catalyst.
Milligan added that Oklo's BOO model offers long-duration contracted cash flows but concentrates construction and financing risk in the early years. He argues that federal policy moves—including Executive Order 14299, expanded tax credits, DOE pilot programs, and AI-driven power-demand planning—collectively strengthen the deployment outlook.
The analyst also stressed Oklo's financial position. With roughly $1.2 billion in liquidity at the end of the third quarter of 2025, the company can advance Aurora-INL, speed fuel-fabrication work, progress the Tennessee fuel campus, and continue NRC licensing without near-term equity needs.
OKLO Price Action: Oklo shares were down 6.08% at $104.86 at the time of publication on Friday, according to Benzinga Pro data.
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