Investing.com -- Bank of America reinstated coverage of two leading small modular reactor companies in notes on Friday, initiating a Buy rating on Oklo and a Neutral rating on NuScale Power, drawing a distinction between the two based on commercial traction and business model differentiation.

In a note from analyst Rinny Singh, BofA said Oklo's vertically integrated build-own-operate model positions it as a potential early leader in the SMR sector.

The firm set an $80 price target on Oklo, implying roughly 23% upside from current levels, pointing to a binding 1.2-gigawatt power agreement with Meta and a broader pipeline exceeding 14 gigawatts under non-binding customer letters as key indicators of demand.

BofA expects Oklo to reach initial positive EBITDA by approximately 2030, with earnings ramping steeply to around $1.7 billion by fiscal 2035 as reactor deployments scale.

On NuScale, BofA was more cautious. While acknowledging the company's first-mover regulatory advantage as the only SMR with U.S. Nuclear Regulatory Commission Standard Design Approval, the firm said "converting agreements to firm deals has been slower than anticipated" and flagged increasing cash burn and near-term funding risk.

BofA set a $12 target on NuScale, saying it sees "limited near-term upside, with valuation already reflecting NuScale's technology leadership and its execution and financing challenges."

BofA also noted that peers have increasingly secured hyperscaler-supported agreements, an area where NuScale "remains underexposed," as a key competitive disadvantage in the current environment.