Oklo Inc. (NYSE: OKLO), says that its loss in 2024 has increased significantly, resulting in a decline of more than 10% in its stock price.
The nuclear energy company lost only 47 cents per share in 2023, compared to 74 cents in 2019.
Analysts are still bullish on the pre-revenue business, as the narrative surrounding the company is more important in the short term than its financials.
The Oklo share price is now down 50% from its high of February 7 ..COM
Why are analysts still bullish on Oklo?
Oklo shares have been punished this morning because the company’s management warned on Tuesday of “significant expenses” and “continuing financial losses”.
Dan Ives, senior analyst at Wedbush, recommends that investors concentrate on the long term.
Ives believes that Oklo’s stock could rise to $45 because its new 75 megawatt reactor will “deliver more electricity to customers, especially data centres”. His price target suggests a potential gain of about 60% from current levels.
Note that the nuclear power company based in Santa Clara, CA has committed to delivering commercial energy by the end 2027.
Oklo’s 75MW model leads to better plant economics
Citi analyst Vikram bagi said that the stock of Oklo may remain choppy for the near future, but expressed a positive outlook for the long term.
Bagi is also bullish about the firm’s 75MW-model “due to the data center customer requirements which indicate 60-75 Megawatt as the sweetspot.”
Oklo’s Aurora reactors can now produce between 15MW and $75MW from a single unit – a significant increase over the 15MW to $50MW previously.
Bagi says that a larger design will result in higher upfront costs but “better plant economics overall” over the long term.
Despite recent pullbacks, Oklo’s shares are currently five times higher than their 52-week-low.
Oklo’s recent purchase could drive revenue
Oklo stock is still attractive because companies like Microsoft have repeatedly shown an interest in nuclear power as a reliable, carbon-free source of energy for their energy-intensive computer centers.
Analysts are optimistic about the recently completed acquisition by the NYSE listed company of Atomic Alchemy, which will allow it to expand its market into radioisotopes.
Bagi expects Oklo’s benefits from the buyout to begin by early next year.
He told clients that the Atomic Alchemy agreement could start generating revenue for the company in the first quarter 2026.
Investors should be aware that the company currently does not pay a dividend. Its future depends on its ability secure timely agreements with customers.
Delays on this front are still a significant downside for OKLO shares as of the date of writing.
This post Deep dive – Why Oklo’s stock may have been overblown after its earnings drop appeared first on ICD
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