Fermi (FRMI) Reiterated at Buy by UBS After Tennant Terminates AICA

UBS analyst John Hodulik reiterated a Buy rating and $30.00 price target on Fermi (NASDAQ: FRMI).

The analyst commented, "Fermi announced this morning that the company's first prospective tenant has terminated its Advanced in Aid of Construction Agreement (AICA) of $150M that was received on November 3 (release notes no funds have been drawn). This follows the expiration of the exclusivity period in the first tenant's Letter of Intent (LOI) on December 9. The release also notes the company continues to negotiate the terms of the lease agreement with the first prospective tenant and has commenced discussions with other potential tenants now that the exclusivity period has expired. A delay in converting the first tenant's LOI into a definitive lease agreement has been the primary overhang on the stock and these developments will add to the uncertainty. Management has emphasized that the lease with Texas Tech and agreement with Xcel are not at risk. We believe negotiations are ongoing with the LOI intact, but these developments still lower the visibility on the timeline for ultimate lease execution, further progress on site construction, financing and revenue commencement."

For an analyst ratings summary and ratings history on Fermi click here. For more ratings news on Fermi click here.

Shares of Fermi closed at $10.09 yesterday.

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