Nuclear reactor developer X-Energy shares climb as IPO banks start coverage
19/05/2026 15:40
** X-Energy's XE.O shares up 4.5% to $26.75 early Tues after several bullish ratings from analysts at investment banks which underwrote co's IPO last month
** Small nuclear reactor (SMR) deployer, backed by Amazon.com AMZN.O, notched 27% debut-day gain on Apr 24 after upsized $1 bln IPO priced at $23
** JP Morgan, one of IPO's lead bookrunners, initiates at 'overweight' and $38 PT, and Morgan Stanley starts at 'overweight' with $41 PT
** Morgan Stanley says XE is a leading designer of advanced nuclear reactor technology through its Xe-100 reactor, and co positioned competitively across the SMR universe with a distinct capital-light business model based on recurring service and fuel revenues
** Other bullish initiations include UBS ('buy', $40 PT) and TD Cowen ('buy', $35 PT)
** Though Jefferies starts with 'hold' rating and $28 PT, saying it sees a more balanced risk/reward with shares up >10% post-IPO
** Jefferies says risks for XE are a lack of fuel availability and faster, more economical alternatives, pointing to solar+storage, gas, and enhanced geothermal energy
** Cloud giant AMZN, about 23% XE shareholder post-offering, first invested in XE in 2024, anchoring a $500 mln financing alongside Ken Griffin, CEO and founder of hedge fund Citadel, and affiliates of Ares Management ARES.N
** In 2025, XE reported rev of ~$109.3 mln and net loss of ~$390 mln
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))