Fermi (FRMI) PT Lowered to $11 at Mizuho

Mizuho analyst Vikram Malhotra lowered the price target on Fermi (NASDAQ: FRMI) to $11.00 (from $27.00) while maintaining a Outperform rating.

The analyst commented: "We update our model (key assumptions), price target and outline a Bull/Bear framework given a) proximity to a 90-day tenant signing goal date, b) announcement of key officers/employment agreements with key incentives for the CCO, and c) upcoming earnings (2Q). Our new price target of $11 (down from $27), essentially assumes a) a push-out of the magnitude of tenant signings - assume only a 1GW lease/revenue through 2028, b) higher Capex given tenants' turnkey requirements - see assumptions inside and c) a heavily discounted AFFO/EBITDA multiple versus peers - given still-high execution risk. Our Bull Case ($17) assumes a steeper trajectory of tenant signings, whereas our Bear Case ($4) contemplates an SOTP using PP&E and land value. We maintain our Outperform rating with a view that a tenant is likely signed in the next 3 months."

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