Oklo Stock Downgrade: Why BofA Changed Its Tune
BofA downgraded Oklo stock. They like nuclear long-term, but feel the current high price is too risky now due to unrealistic valuation.
- BofA Downgrades Oklo (OKLO): The financial firm BofA downgraded Oklo stock from a "Buy" rating to "Neutral".
- Target Price Adjustment: They did raise the price target for OKLO to $117, up from $92.
- Valuation Concerns: The main reason for the downgrade is that Oklo’s current valuation is seen as "unrealistic." This valuation assumes deployment ramps and discount rates that are too aggressive for the current stage of small modular reactor (SMR) adoption.
- Short-Term Risk: Although BofA remains positive about the long-term future of nuclear energy, the current high stock price "leave[s] little room for error," suggesting the near-term risks are negative.
- AI Trade Warning: The analyst also mentioned that market indicators suggest the high growth period for stocks related to the AI trade may be entering later stages.