Bank of America has reinstated analyst coverage of two prominent small modular reactor companies, assigning divergent ratings that reflect differing business models and market traction.
In a research note prepared by analyst Rinny Singh and published Friday, BofA initiated a Buy rating on Oklo and a Neutral rating on NuScale Power. The firm framed the distinction largely around Oklo's commercial progress and the structural advantages of its vertically integrated model versus NuScale's current execution and financing profile.
BofA set an $80 price target for Oklo, which the bank says implies approximately 23% upside from prevailing share levels. The report pointed to a binding 1.2-gigawatt power agreement with Meta and a broader pipeline of more than 14 gigawatts represented by non-binding customer letters as evidence of demand for Oklo's offering. The bank also projected Oklo to achieve initial positive EBITDA around 2030, with earnings accelerating to about $1.7 billion by fiscal 2035 as reactor deployment scales.
By contrast, BofA took a more cautious stance on NuScale. The note recognized NuScale's regulatory advantage as the only SMR to hold U.S. Nuclear Regulatory Commission Standard Design Approval, a first-mover position on the licensing front. However, the bank cautioned that converting agreements into firm contracts has progressed more slowly than expected and highlighted increasing cash burn and near-term funding risk for the company.
BofA assigned a $12 price target to NuScale and suggested limited near-term upside, saying the current valuation already incorporates NuScale's technology leadership alongside its execution and financing challenges. The note additionally observed that competing developers have increasingly secured hyperscaler-supported agreements - an area where NuScale "remains underexposed" - which BofA identified as a competitive shortfall in the present market environment.
This update from BofA signals investor differentiation between vertically integrated, utility-facing business models and those that remain more dependent on regulatory milestones and external financing. The bank's outlook embeds specific operational and financial milestones for Oklo and enumerates execution and funding concerns for NuScale without introducing projections beyond those stated.