Oklo, NuScale Power (SMR) Stocks Sink despite Key Nuclear Developments

Shares in small modular reactor (SMR) producers Oklo (OKLO) and NuScale Power (SMR) plunged on Thursday afternoon despite the U.S. government seeking details from the public on how to deploy SMRs to power commercial ships.Claim 55% Off TipRanksNew trading tool for SMR bulls/bears Oklo's shares also tumbled despite securing speedy regulatory approval for a high-level safety and design rulebook to govern how its Aurora reactor project in Idaho will be engineered and licensed. U.S. Explores Nuclear-Powered Commercial Ships On Thursday, the U.S. Department of Transportation's Maritime Administration (MARAD) agency published a notice in the U.S. Federal Register seeking information on how to develop a "U.S.-built scalable, repeatable, commercially viable, system-centric" SMR for use within the marine transportation system. This followed another document published the previous day that sought information on building such a system for long-term commercial adoption. "Global competitors are advancing the integration of nuclear propulsion into the broader maritime industry, including shipyards, ports, insurance regimes, and logistics networks, which places the U.S. at a strategic disadvantage in the absence of domestic SMR development," MARAD said in the document. Both Oklo and NuScale Power design and develop SMRs and are racing towards delivering their first commercial nuclear power plant. They both take different approaches, with the former using fast-moving neutrons and liquid-metal or sodium cooling, while the latter relies on the conventional light-water standard to slow neutrons and carry heat away from the reactor core. Oklo Stock Tumbles despite 'Incremental Step Forward' Meanwhile, Oklo's shares plunged even though Texas Capital Securities analyst Nate Pendleton went bullish on the stock after the U.S. Nuclear Regulatory Commission approved its Principal Design Criteria (PDC) topical report for its Aurora reactor. Pendleton reaffirmed his Buy rating on OKLO stock and set a price target of $120, implying roughly 51% upside from Oklo's closing price of $79.62 on Wednesday. The analyst noted that Oklo got the approval in half the time it typically took, that is, 15 days versus the regular 30-60-day window. "In our view, the PDC approval is another incremental step forward for the company's project while highlighting the increasingly efficient regulatory path for advanced reactor solutions," Pendleton contended. Which Nuclear Stock Is the Better Buy? TipRanks' Stock Comparison tool shows that Nano Nuclear Energy (NNE) currently offers the biggest upside of 81%. This is based on an average price target of $47.50 that comes with a Moderate Buy consensus rating from analysts.