Oklo Inc (NYSE:OKLO) shares are rising Tuesday. The company selected a lead constructor for its first Aurora powerhouse. Additionally, Cantor Fitzgerald initiated coverage on Oklo with an Overweight rating.
What To Know: Oklo on Tuesday announced a newly executed Master Services Agreement in which it chose Kiewit Nuclear Solutions as the lead constructor for its first commercial Aurora powerhouse in Idaho.
Under the agreement, Kiewit will support the design, procurement and construction of the powerhouse, with pre-construction expected to begin in 2025.
“We’ve completed key pre-construction milestones, including site characterization work in Idaho, in partnership with the U.S. Department of Energy and Idaho National Laboratory,” said Jacob DeWitte, co-founder and CEO of Oklo.
“Kiewit brings the execution strength and project delivery experience that are essential as we move into this next phase.”
A significant portion of the Aurora powerhouse’s construction scope is non-nuclear. Through its agreement with Kiewit, Oklo believes it can accelerate delivery timelines and reduce overall costs.
Oklo is targeting deployment of its first nuclear powerhouse in late 2027 or early 2028. The company’s CEO said in May that timelines could potentially be accelerated after President Donald Trump signed multiple executive orders aimed at supporting the domestic nuclear industry.
Oklo shares also appear to be getting a boost on Tuesday after Cantor Fitzgerald analyst Derek Soderberg initiated coverage with an Overweight rating and set a price target of $73, flagging the company as a potential leader in the coming multi-trillion-dollar grid expansion.
Soderberg said Oklo is positioned to be able to deploy efficient, cost-effective energy for the AI economy, with small modular reactors that are the ideal size for the data center market.
“Oklo technology is based on a 30-year operational history and proven fast fission reactor technology, reducing the technology risk. Moreover, Oklo reactors are highly scalable as the vast majority of components have established supply chains,” the Cantor Fitzgerald analyst wrote in a note.
The analyst sees a path for Oklo to achieve long-term free cash flow margin of more than 50%. Soderberg also noted that the company’s fuel recycling technology provides upside potential to its profitability.
“We believe Oklo will be a big winner,” the analyst said.
OKLO Price Action: Oklo shares are up approximately 193% year-to-date. The stock was up 1.27% at $63.20 at the time of publication Tuesday, according to Benzinga Pro.
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Photo: courtesy of Oklo.
