Cantor Fitzgerald initiated coverage on X-Energy Inc (NASDAQ: XE) with an Overweight rating and a price target of $38.00, analyst Derek Soderberg announced. The target represents a 42% upside from the current stock price of $26.77, though the stock has declined 14% over the past week and is trading near its 52-week low of $25.06.
X-Energy combines a Generation IV high-temperature gas-cooled reactor called the Xe-100 with a vertically integrated proprietary fuel business known as TRISO X. The TRISO X facility is the first and only U.S. NRC-licensed Category II commercial advanced nuclear fuel facility.
The company has a contracted pipeline of 36 reactor plants representing 144 reactors and approximately 11.5 gigawatts of cumulative capacity. The pipeline is anchored by Dow, Amazon and Centrica. Despite this promising pipeline, X-Energy currently generates $94 million in revenue with a market capitalization of $10.5 billion.
Cantor Fitzgerald views X-Energy as the most strategically positioned company in the U.S. advanced nuclear landscape. The firm cited the company’s unique Xe-100 design, blue-chip customer relationships, and diversified revenue streams.
The analyst believes X-Energy is positioned to emerge as a leading platform within the energy transition sector.
