1、 EQUITIES UTILITIES&CLEAN ENERGY ADVANCED NUCLEAR Rome Wasnt Built in a Day 25 JULY 2025 Securities Research Report Production time:05:46*(London time)Research Analysts&Publishing EntitiesResearch Analysts&Publishing Entities We launch coverage of NuScale(SMR)at Neutral rating,$41 TP(-20%Downside),a

2、nd Oklo(OKLO)at Underperform rating,$14 TP(-81%Downside).Advanced Nuclear tech has an opportunity to be the next frontier of US generation one day.However,a spectrum of risks casts doubt on the deep pre-2040 adoption currently embedded for the industry.This is especially the case for OKLO,which has

3、steep hurdles for fuel supply,licensing,and plant development.For SMR,we are far less punitive on fuel and design but scaled costs and a deeper backlog must be proven out.SMR+350%and OKLO+750%TTM reflect market chasing positive nuclear/AI/load growth sentiment,while overlooking the many roadblocks&c

4、hallenges central to scaling small nuclear.Many HALEU Hoops to Jump through for Oklo SMRs fuel supply is derisked,a key tenet to our Neutral rating.OKLO,however,is severely limited by nascent commercial HALEU.We model a range of HALEU outcomes and estimate OKLOs supply will limit deployment to only

5、2-3 reactors by 2035at best.See pgs.13-17.Regulatory Roadblocks are a Feature,Not a Bug SMRs NRC design approval in May 25 was a key clearing event,enabling easier licensing for the RoPower plant.Now its a race to sign customers.OKLO is still preparing the INL license app.Future plants rely on appro

6、val,a tall hurdle given 2-3 yr.lead times and NRC bottlenecks.See pgs.23-26.LCOE Induces Sticker Shock but Demand for Clean,Baseload Electrons isnt Going Away SMRs OEM model and OKLOs Own&Operate/PPA model each confront LCOE differently(see pg.8).But both must amass customers willing to absorb our L