After closing 5.8% lower yesterday from where it ended Monday's trading session, Oklo (OKLO 6.77%) stock is moving decisively higher on Wednesday. While the upstart nuclear energy company didn't have any news to report today to explain the stock's movement, investors are likely responding to the bullish opinions on Oklo stock that analysts have shared over the past few days.
As of 1:46 p.m. ET, shares of Oklo are up 6.1%, retreating slightly from an earlier rise of 8.2%.
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What's Wall Street saying that has investors charged up?
Oklo investors have been seeing increasingly favorable commentary from analysts over the past week, with Citigroup lifting its price target to $68 from $30. Most recently, Daiwa upgraded Oklo stock to outperform from hold and raised its price target to $86 from $58. According to The Fly, Daiwa predicated its upwardly revised target on the belief that Oklo will benefit from a favorable regulatory environment. In addition, Daiwa informed investors in a research note that it believes the company's distributed power solution provides a "promising long-term answer" to the current congestion in connecting projects to the electrical grid.
Issued over the weekend, Daiwa's $86 price target on Oklo stock implies upside of 13.9% from where shares closed last Friday.
Should investors race to power their portfolios with Oklo stock now?
While the favorable opinions that Daiwa and Citigroup have about Oklo stock are encouraging, it's important to remember that analysts often have shorter investing horizons than the multiyear holding periods that The Motley Fool favors. Therefore, investors should investigate the company thoroughly before clicking the buy button.
Also, it's important to recognize that not everyone is bullish about Oklo stock. Moses Sutton, an analyst at BNP Paribas Exane, initiated coverage on Oklo last week, assigning an underperform rating and a $14 price target.
With such disparate opinions about the nuclear energy stock, those interested in nuclear energy exposure who are unsure about how to proceed with Oklo may find a nuclear energy exchange-traded fund (ETF) to be a more favorable option.
