X-Energy's stock surged 5.16% during intraday trading on Tuesday, following a wave of positive analyst coverage from major investment banks.

The price movement comes as multiple Wall Street firms initiated coverage of the small modular reactor company with bullish ratings. UBS started coverage with a Buy rating and $40 price target, while JPMorgan initiated with an Overweight rating and $38 target. Morgan Stanley also began coverage with an Overweight rating and $41 price target.

Other positive initiations included Guggenheim with a Buy rating and $57 price target, TD Cowen with a Buy rating and $35 target, and Wolfe Research with a Peer Perform rating. Analysts highlighted X-Energy's position as a "frontrunner" in the emerging nuclear technology space and noted the company's backing by Amazon, which provides additional credibility to its business model.