Jefferies initiated coverage on X-Energy Inc (NASDAQ:XE) with a Hold rating and a $28.00 price target.
The firm describes X-Energy as a vertically-integrated new nuclear technology company backed by Amazon, with visibility to over 11 GW through Dow, Amazon, and Centrica.
First operations are over five years away. Risks include lack of fuel availability and faster, cheaper alternatives like solar plus storage, gas, and enhanced geothermal.
Shares rose 10% since IPO but fell 19% in the past week, trading near a 52-week low of $25.06. The price target implies 9% upside.
X-Energy posted a net loss of $390 million on $94 million revenue over the last twelve months, with a negative gross profit margin of 71%.
Jefferies sees a balanced risk-reward at current valuations.
