Fermi (FRMI) Reiterated at Market Outperform by Citizens Amid CEO Termination

Citizens analyst Greg Miller reiterated a Market Outperform rating and $30.00 price target on Fermi (NASDAQ: FRMI).

The analyst commented, "Fermi's former CEO hosted a conference call on replacing the existing board with one compiled by himself, while refuting claims that he was terminated for cause. He has called for the immediate replacement of the board and the start of a dual-track process that involves the continued development of the asset, in combination with running a process to sell the company outright. The call to pursue the sale of the company comes only after specifically outlining the concept that a lease agreement to a single entity would fail to maximize shareholder value. While one could hardly argue against entertaining potential bids for the company overall, should the new management team be close to signing its first customer of scale, we believe it would likely be better off pursuing the strategy only recently articulated by the former CEO (i.e., a multiple tenant solution that is more likely to maximize shareholder value). We reiterate our Market Outperform rating and $30 price target, implying ~8.5x 2028E EV/EBITDA."

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 $6.06 yesterday.

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