Canaccord Genuity initiated coverage on Oklo Inc. (NYSE: OKLO) with a Buy rating and a price target of $175.00.

The firm said its valuation was based on a discounted cash flow model extending to 2050, assuming that Oklo's reactor development projects would be primarily financed through debt and supported by investment tax credits. This structure, it said, could enhance long-term returns on capital with limited equity dilution.

Canaccord applied a weighted average cost of capital slightly above 7% and a long-term growth rate of roughly 6%. The analysts acknowledged concerns about potential overvaluation in AI-related markets but emphasized Oklo's strategic position in a rapidly expanding nuclear energy landscape.

The report highlighted growing global demand for clean, baseload power and predicted that nuclear generation would represent a larger share of the energy mix in the coming decades. Canaccord said Oklo was emerging as a vertically integrated distributed nuclear energy company capable of reshaping the sector.