X-Energy Inc "Initiate Buy at $40 PT: Integrated 4G Nuclear" (Buy) Windham

Research evidence excerpt

X-Energy Inc "Initiate Buy at $40 PT: Integrated 4G Nuclear" (Buy) Windham

Global Research

19 May 2026ab

Initiation of Coverage

EquitiesX-Energy Inc

Initiate Buy at $40 PT: Integrated 4G Nuclear United States

Industrial Services

12-month rating Buy

Initiate Buy rating & $40 PT Prior : No Rating

We initiate X-Energy (XE) with a Buy and view the stock as attractive exposure to the 12m price target US$40.00

emerging 4G nuclear reactor industry. XE has unique advantages positioning it at the Prior :

forefront of 4G nuclear commercialization, a market we expect to result in only 2-4

Price (18 May 2026) US$25.08

players taking most of the U.S. market. We model for XE to grow total services revenues

at 37% p.a. 2026-40E, and based on our 10x 2030 EV/sales multiple, we see the market RIC: XE.O BBG: XE US

pricing in 2030 revenues 33% below our forecast. Trading data and key metrics

52-wk range US$35.98-25.08

Advantaged development position

Market cap. US$10.0b

XE is a highly differentiated 4G nuclear reactor technology provider compared to other

Shares o/s 399m (COM)

publicly listed 4G nuclear reactor peers, in our view, driven by:

Free float 12%

Razor / Razor Blade business model: XE provides an integrated solution to Avg. daily volume ('000) 7,372

customers providing the system design upfront and fuel fabrication and plant Avg. daily value (m) US$236.9

operational services over the life of the plant (+60yrs). Common s/h equity (12/26E) US$2.13b

The U.S. Advanced Reactor Demonstration Program (ARDP) winner: In P/BV (12/26E) 5.1x

2021, XE was one of two primary awardees under the ARDP a program to Net debt to EBITDA (12/26E) 9.9x

commercialize 4G reactors. XE was awarded $1.2bn in cost share funding with EPS (UBS, diluted) (USD)

further funding likely, in our view. 12/26E