Initiate at Buy - The X Factor Gen IV Reactor

Research evidence excerpt

Initiate at Buy - The X Factor Gen IV Reactor

Sustainability: Clean Energy

X-energy

TD SECURITIES (USA) LLC INITIATING COVERAGE

May 19, 2026

Price: $25.60 (05/18/2026) Initiate at Buy - The X Factor Gen IV Reactor

Price Target: $35.00

BUY (1)

ESG SCORE: N/A

Marc Bianchi, CFA THE TD COWEN INSIGHT

646 562 1393

A combination of appealing technology, strong pipeline of customer commitments, tangible

marc.bianchi@tdsecurities.com

progress on early projects, and solid bench of management makes X-energy one of the best

Bhairav Manawat positioned advanced nuclear companies. We initiate with a Buy rating and $35 12-month

646 562 1353 target.

bhairav.manawat@tdsecurities.com

Esteban Albarracin Set Up for Success: We view X-energy as among the most promising Gen IV nuclear reactor

646 562 1402 businesses due to a combination of attractive technology, a strong project pipeline with

esteban.albarracin@tdsecurities.com committed customers, and a deep bench of management talent. With proceeds from the

Key Data recent IPO, the company has cash of $2.1B and no debt. We estimate $1.7B of cash will be

Symbol NYSE: XE consumed before becoming FCF positive in 2030 with ~$420MM of EBITDA. Our 12-month DCF-

52-Week Range: $35.98-$25.60 based price target of $35 incorporates a 14% WACC and assumes ~2.5GW of deployments by

Market Cap: $14.6B 2035 and ~20GW of deployments by 2040.

Net Debt (MM): $(2,118.9) Appealing Fuel Form: X-energy's reactor technology and TRi-structural ISOtropic (TRISO)

Cash/Share: $(0.68) fuel encased in a billiard ball-sized graphite pebble allows for more efficient use of enriched

Dil. Shares Out (MM): 413.6 uranium. Furthermore, X-energy's fuel form is designed not to melt, removing the need for

Enterprise Value $12,492.2 costly containment infrastructure.