Citi maintains its Neutral rating on Oklo (OKLO, Financial), setting a price target of $30, following the announcement that Sam Altman will step down as chairman of the board. This unexpected change has raised some investor concerns, particularly due to the timing of Altman's departure. However, Oklo's management is reportedly in talks with various potential candidates for the board, with consideration being given to the possibility of once again separating the roles of CEO and chairman in the future.
One key development highlighted in Citi's analysis is the ongoing negotiations between Oklo and OpenAI regarding a potential power supply agreement. Such a deal could address apprehensions related to a conflict of interest, as Altman holds a significant leadership position at OpenAI. Citi anticipates a negative initial reaction from investors to Altman's abrupt exit; however, it also suggests that securing a partnership with OpenAI could alleviate these concerns, providing a positive counterbalance to the current uncertainty.
