Bank of America reinstates Oklo with Buy and $80 target, NuScale at Neutral and $12. The rating gap signals a clear leader in small modular reactors, with licensing milestones as the next catalyst.
Bank of America reinstated coverage on two small modular reactor developers with sharply divergent ratings. Oklo (OKLO) received a Buy rating and an $80 price target. NuScale Power (SMR) was resumed at Neutral with a $12 target. The gap between the two price targets – more than six times – signals that the bank sees a clear leader in the early-stage SMR market.
BofA's analyst positioned Oklo as a potential early leader among SMR developers. The $80 price target implies a valuation that far exceeds NuScale's. The read-through is that Oklo's design, licensing strategy, or commercial partnerships may be viewed as further along the regulatory path than peers. For traders tracking the nuclear renaissance, this rating creates a clear first-mover premium case. That premium depends on execution on next NRC licensing milestones.
NuScale Power received a Neutral rating and a $12 price target, a fraction of Oklo's target. BofA does not appear to see the same upside potential or near-term catalyst density. The Neutral label suggests that the risk-reward is balanced at current levels, with no compelling reason to overweight the stock relative to other SMR plays. The divergence between the two ratings is the key takeaway: BofA is effectively making a call on which company will capture market share in the upcoming wave of reactor deployment.
The SMR sector is still pre-revenue for most companies, so analyst ratings hinge on licensing progress, government support, and cost competitiveness. BofA's split recommendation implies that the sector is not a homogeneous trade. Oklo may benefit from a faster regulatory clock or a more differentiated reactor design. NuScale, despite having the first NRC-approved design in the U.S., may face execution headwinds or a slower commercial ramp.
For investors building a watchlist, the rating gap creates a relative-value framework. If Oklo's licensing proceeds without delays, the stock could re-rate toward the target. If NuScale announces a new offtake agreement or cost reduction, the Neutral rating could shift. The sector's next concrete catalyst is the NRC's decision on combined operating licenses for any SMR project, which would validate the technology and open the door to construction financing. See our market analysis for broader nuclear-sector context.
Bank of America (BAC), the analyst firm behind these ratings, carries an Alpha Score of 57 out of 100 with a Moderate label in the Financials sector. The score suggests a balanced risk profile with no extreme skew. As the source of the SMR call, BAC's own track record matters less than the specific logic behind the Oklo and NuScale ratings. Investors should note that brokerage ratings are just one input; the sector's actual development depends on regulatory approvals, fuel supply, and utility contracts. Visit the BAC stock page for more on the firm's profile.
The SMR story is driven by policy support, nuclear regulation, and project financing. Oklo's Buy rating will be tested by its next NRC filing or funding announcement. NuScale's Neutral rating may shift if it lands a new commercial order or wins a Department of Energy award. For now, BofA's analysis offers a clear leader-follower framework. The question is whether the market will confirm that hierarchy or if the gap closes on execution surprises.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.