Core Viewpoint - Citigroup maintains a neutral/high-risk rating on Oklo, setting a target price of $68, with a 90-day short-term bullish outlook due to potential catalysts for stock price increase [1] Regulatory Approval Progress - Oklo has completed the first phase of the design certification application for the Aurora reactor with the U.S. Nuclear Regulatory Commission (NRC), receiving B and C class feedback, with no A class issues reported - The company plans to submit a Combined License Application (COLA) in Q4 2025 and has selected Kiewit as the main contractor, aiming to start pre-construction in Q3, with commercial operations expected by late 2027 to early 2028 [2] Technological Breakthroughs and Strategic Partnerships - Oklo's unique sodium-cooled fast reactor technology can utilize degraded mixtures and plutonium-based materials as fuel, recognized by the U.S. Department of Energy - In 2025, Oklo established strategic partnerships with Vertiv, Liberty, and Lightbridge to develop integrated nuclear energy solutions, particularly enhancing energy efficiency through a cooling system driven by reactor waste heat - The company has been selected as a nuclear energy supplier for U.S. military facilities, indicating official recognition of its technology [3] Financial Status - Oklo reported mixed results for Q2 2025, with an operating loss of $28 million, exceeding Citigroup's expectation of $19.4 million, primarily due to management expenses rising to $16.5 million and R&D expenses reaching $11.5 million - The loss per share was $0.18, worse than the expected $0.10, but improved from a loss of $0.27 in the same quarter of 2024 - The company reaffirmed its annual cash burn guidance of $65 million to $80 million and indicated potential acceleration of some capital expenditures into 2025 to expedite site preparation and fuel manufacturing - As of the end of Q2, cash and securities totaled approximately $683 million, significantly higher than $261 million at the end of Q1, indicating strong liquidity [4] Market Expansion - Oklo's customer pipeline continues to grow, with total demand reaching 14 GW, remaining stable from the previous quarter - Management indicated that the agreement structure with LBRT may allow for earlier revenue recognition than expected - The company has signed multiple strategic partnerships, including supplying 12 GW of power to Switch data centers and delivering 100 MW of power to Wyoming Hyperscale, with intention orders covering data centers, industrial decarbonization, and defense facilities [5] Summary - Overall, Citigroup acknowledges Oklo's progress in licensing, supply chain, partnerships, and capital reserves, but notes the lack of new customer announcements, higher-than-expected expenses, and inherent risks as factors suppressing stock price, thus maintaining a neutral view while advising investors to monitor the 90-day short-term catalyst window [7]