Oklo (OKLO) highlighted significant progress on fuel and regulatory fronts, but key questions remain around the cost of its first-of-a-kind, or FOAK, reactor build and the timing of its power purchase agreements, BofA Securities said in a Wednesday note.

The US Department of Energy recently granted swift approval for Oklo's Fuel Fabrication Facility at Idaho National Laboratory and provided funding for "Project Pluto," which advances plutonium-based fuel testing, according to the research note.

The brokerage noted that Oklo began construction of its first Aurora reactor in October, with excavation planned for early 2026 under DOE oversight. A Kiewit-led capital expenditure update, expected early next year, will serve as a key gauge of project economics.

Oklo's subsidiary, Atomic Alchemy, also received DOE support for a pilot isotope production facility set to begin operations by mid-2026 and generate modest initial revenue, the report added.

BofA highlighted that Oklo's valuation already assumes a smooth transition from FOAK to next-of-a-kind builds, with upcoming catalysts centered on project cost visibility, PPA agreements, and financing structure.

The firm maintained its neutral rating on the stock and lowered its price objective to $111 from $117.

Shares of Oklo were up 5.5% in recent trading.

Price: 109.95, Change: +5.73, Percent Change: +5.50