Investing.com -- Wedbush launched coverage of six nuclear energy stocks on Tuesday, favoring Oklo, X-Energy and Nano Nuclear Energy while initiating NuScale Power at Underperform.
Analyst Seth Basham assumed coverage of Oklo at Outperform with a $36 price target, down from the firm's previous $110. He called Oklo the furthest along of any U.S. advanced nuclear developer, noting that its Groves isotope test reactor reached criticality in under 11 months.
"OKLO shares, along with the broader advanced nuclear group, trade as if few or no reactors get built," Basham wrote.
X-Energy was initiated at Outperform with a $17 target. Wedbush said the company holds pole position among high-temperature gas reactor developers, with its Xe-100 nearing an NRC construction permit at Dow's Seadrift site.
"Investors remain deeply skeptical of first-of-a-kind (FOAK) nuclear, and we believe that skepticism leaves XE's 11.5 GW pipeline sharply discounted," the analyst said.
Nano Nuclear was initiated at Outperform with an $18 target. Wedbush cited its KRONOS microreactor, which is among the few Generation IV designs at the NRC construction permit application stage, along with roughly $580 million in cash.
Terrestrial Energy and General Fusion were initiated at Neutral, with targets of $4 and $7, respectively.
NuScale received an Underperform rating and a $5 target.
"NuScale holds the only NRC Design Certification for a small modular reactor (SMR), yet it has not signed a binding, financed module order in its 19-year history," Basham said.
He noted that NuScale's commercialization depends on its partner ENTRA1, whose agreement with the Tennessee Valley Authority remains non-binding. Wedbush's 2035 adjusted EBITDA estimate for NuScale is $287 million, well below consensus of $943 million.
Original Article
Wedbush starts nuclear coverage, backs Oklo and X-Energy
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