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Key Moments

  • Bank of America raised Oklo (NYSE: OKLO) to Buy from Neutral following a binding agreement with Meta Platforms (NASDAQ: META) for a 1.2 gigawatt advanced nuclear campus.
  • BofA increased its price objective on Oklo to $127 from $111, citing higher peer multiples and additional revenue from the Meta deal.
  • Meta has already prepaid $25 million for the first 150 megawatts, enabling early fuel procurement, site work, and development activities.

BofA Turns Bullish on Oklo After Strategic Meta Agreement

Bank of America upgraded Oklo stock to Buy from Neutral after the nuclear technology company entered into a firm, binding agreement with Meta Platforms to develop a phased 1.2 gigawatt advanced nuclear campus.

Following the upgrade and deal announcement, Oklo shares rose more than 4% in premarket trading on Wednesday.

Analyst View: From Concept to Execution

BofA analyst Dimple Gosai characterized the agreement with Meta as a strong indication that Oklo is transitioning from “concept” to “execution.”

Gosai raised his price objective on Oklo to $127 from $111. He attributed the higher target primarily to an expansion in peer multiples and to incremental revenue associated with the Meta agreement.

Structure and Implications of the Meta Deal

The agreement with Meta includes customer prepayments that enable Oklo to begin early development activities ahead of final power purchase agreements (PPAs). Gosai noted that the near-term megawatt contribution is modest, but he views the arrangement as providing “tangible proof of execution and counterparty commitment,” at a time when investors are increasingly focused on whether advanced nuclear projects are moving beyond the conceptual phase.

Meta has already prepaid $25 million for the first phase, which covers approximately 150 megawatts. Those funds are earmarked for fuel procurement, site preparation, and initial development work.

According to Gosai, this structure allows Oklo to commence execution before final PPAs and licensing approvals are in place. He added that the prepayments “meaningfully de-risk the power business,” while emphasizing that investors are still closely watching the timing of PPAs, refundability mechanisms, and potential equity issuance.

Key Deal MetricsDetail
Total planned advanced nuclear campus capacity1.2 gigawatts
First phase capacityApproximately 150 megawatts
Meta prepayment for first phase$25 million
Oklo price objective (prior)$111
Oklo price objective (new)$127
Projected 2036 revenue (prior)$5.5 billion
Projected 2036 revenue (new)$5.9 billion

Context on Switch and Geothermal Concerns

Gosai also commented on investor questions about Switch contracting relatively small amounts of geothermal power. He said the geothermal agreement, at roughly 13 megawatts starting around 2030, is incremental and aligns with Switch’s multi-technology strategy. He added that this does not replace the roughly 12 gigawatts of potential capacity under the existing Oklo-Switch framework.

Model Revisions and Long-Term Outlook

Bank of America updated its long-term model to incorporate the Meta transaction. The firm is conservatively assuming four development phases and is treating only about 30% of the 1.2 gigawatts as incremental relative to its prior assumptions.

These revisions increased BofA’s projected 2036 revenue for Oklo to $5.9 billion, up from a previous estimate of $5.5 billion.

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