Oklo (OKLO) got another fuel pathway with its selection by the US Department of Energy for advanced talks under the surplus plutonium utilization program, Wedbush Securities said in a note Tuesday.

The program is intended to convert surplus plutonium into fuel for advanced reactors under US security and safeguards requirements, with Oklo leading the utilization efforts in partnership with newcleo, which would bring fuel expertise and potential project capital, the investment firm said.

Fuel supply remains one of the biggest bottlenecks for advanced reactor deployment and conversion of surplus plutonium into fuel could help de-risk fuel availability if the parties reach definitive agreements, according to the note.

Wedbush maintained its outperform rating on Oklo, with a $110 price target.

Shares of Oklo were up 6.6% in Tuesday trading.

Price: 70.21, Change: +4.33, Percent Change: +6.56