Stifel lowers Fermi’s price target amid delayed tenant contracts but maintains a Buy rating on long-term AI-driven power demand potential.
Stifel reduced its price target for Fermi Inc. (NASDAQ:FRMI) to $17 from $29 while retaining a Buy rating on June 23, 2026. The firm cited delays in securing a firm contract with an initial tenant as the primary reason for the valuation adjustment, though it acknowledged progress behind the scenes post-IPO.
Fermi remains a pre-revenue, high-risk story, with Stifel updating its forecasts to reflect ongoing uncertainty. Earlier in June, Evercore ISI downgraded Fermi to In Line from Outperform, cutting its target to $11 from $20, citing a shift in underwriting standards despite long-term potential in power demand.
Shares of Fermi rose 13% to $6.35 after a report suggested OpenAI may lease a 10-gigawatt data center, boosting optimism for Fermi’s 11 GW natural gas-powered complex.