After dipping 4.5% and ending yesterday's trading session below Monday's close, shares of Nano Nuclear Energy (NNE -0.76%) are powering higher today. With a firm initiating coverage and sharing a bullish outlook on the advanced nuclear reactor stock, investors are racing to click the buy button today.
As of 1:01 p.m. ET, shares of Nano Nuclear are up 11.9%.
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One firm believes this fast-moving company is in a great position
Initiating coverage with a buy rating, Craig Irwin, a Roth Capital analyst, set a $45 price target on Nano Nuclear stock. According to Thefly.com, Irwin based his outlook on the belief that Nano Nuclear is making "rapid progress" toward commencing commercial operations of its small modular reactor, Kronos.
NASDAQ: NNE
Key Data Points
In addition, Irwin recognizes Nano Nuclear as one of only a few companies that have submitted construction permit applications for small modular reactors to the U.S. Nuclear Regulatory Commission.
Based on its closing price of $24.01 yesterday, Irwin's price target implies an upside of more than 87% for Nano Nuclear.
Should investors proceed to power their portfolios with Nano Nuclear stock?
Sure, the prospect of owning a stock that has room to run 87% higher is enticing, but investors need to take the $45 price target with a sizable dash of salt. While Nano Nuclear deserves credit for submitting a construction permit for its Kronos reactor, there's no certainty it will succeed in commencing commercial operations -- let alone recognizing a profit from them if it does.
At this point, Nano Nuclear stock still carries significant risks, so only investors comfortable with speculative investments should consider positions. For those seeking a more conservative approach to nuclear industry exposure, a nuclear energy exchange-traded fund may be a more palatable option.
