Oklo ARMEC Deal Enhances Supply Chain Integration, Adds Margin Support, Wedbush Says

MT Newswires Live02:39

Oklo (OKLO)'s acquisition of ARMEC is strengthening its supply chain integration and supporting its reactor deployment strategy, Wedbush Securities said in a note on Monday.

The investment firm said that ARMEC's positive free cash flow and complementary capabilities are expected to enhance Oklo's margin profile and expand customer and supplier relationships.

With $2.54 billion in cash and securities as of fiscal Q1, Wedbush said Oklo has ample liquidity to pursue further acquisitions.

The deal, which closed June 4, adds ARMEC's two decades of experience in high-precision machining, prototyping and fabrication to Oklo's operations, according to the note.

Wedbush reiterated its outperform rating and $110 price target.

Shares of Oklo were up 2.7% in Monday afternoon trading.

Price: 59.65, Change: +1.56, Percent Change: +2.69

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