Oklo Stock: Bank of America Upgrades to Buy After Meta Deal

TLDR

• Bank of America upgraded Oklo (OKLO) stock to Buy from Neutral, raising the price target from $111 to $127
• Oklo signed a binding agreement with Meta Platforms to develop a 1.2 gigawatt nuclear campus
• Meta prepaid $25 million for the first phase covering around 150 megawatts to fund early development
• The deal moves Oklo from “concept” to “execution” phase according to BofA analyst Dimple Gosai
• BofA raised 2036 revenue projections to $5.9 billion from $5.5 billion based on the Meta agreement

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Bank of America upgraded Oklo stock to Buy from Neutral on Wednesday following a major agreement with Meta Platforms. The nuclear technology company secured a binding deal to develop a phased 1.2 gigawatt nuclear campus for the tech giant.

Oklo Inc., OKLO

Oklo shares jumped over 4% in premarket trading. The upgrade came with a price target increase from $111 to $127, representing a 41% upside from current levels.

BofA analyst Dimple Gosai views the Meta partnership as proof that Oklo is transitioning from theoretical plans to actual execution. The analyst said the deal provides “tangible proof of execution and counterparty commitment.”

Meta has already put money on the table. The company prepaid $25 million for the first phase, which covers approximately 150 megawatts of capacity.

These funds will support fuel procurement, site preparation, and early development activities. The prepayment structure lets Oklo begin work before final power purchase agreements and licensing approvals are in place.

Gosai noted this approach “meaningfully de-risks the power business.” However, investors remain focused on the timing of final PPAs, refundability terms, and potential equity issuance.

Deal Structure and Revenue Impact

The Meta agreement includes multiple phases of development. BofA conservatively assumes four phases in its updated financial model.

The firm treats only about 30% of the total 1.2 gigawatts as incremental to previous assumptions. This conservative approach still led to meaningful revenue revisions.

Bank of America now projects $5.9 billion in revenue for 2036, up from $5.5 billion previously. The increase reflects both the Meta deal and expansion in peer company multiples.

The near-term megawatt contribution remains modest according to Gosai. But the deal addresses investor concerns about whether advanced nuclear projects can move beyond concepts.

Addressing Market Concerns

Recent worries about Switch contracting geothermal power also got attention from BofA. Gosai clarified that the geothermal agreement involves roughly 13 megawatts starting around 2030.

He described this as incremental and consistent with Switch’s multi-technology strategy. The geothermal deal doesn’t displace the approximately 12 gigawatts of potential capacity under the Oklo-Switch framework.

The company currently trades at $89.71 per share with a market cap of $14.02 billion. Oklo’s 52-week range spans from $17.42 to $193.84.

Wall Street analysts now maintain a “Moderate Buy” rating on the stock with an average price target of $103.20. The rating landscape includes two Strong Buy ratings, ten Buy ratings, six Hold ratings, and three Sell ratings.

Insider activity shows CFO Richard Craig Bealmear sold 69,841 shares in December at $78.40 per share. Institutional investors hold about 85% of the company’s stock.

Meta’s prepayment structure represents a new approach in the advanced nuclear sector, allowing development work to proceed while regulatory approvals are pending.

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