Fermi (FRMI) Climbs 12% as Analyst Reaffirms 'Buy'

We recently published 10 Stocks Winning the Market. Fermi Inc. (NASDAQ:FRMI) was one of the best performers on Tuesday.

Fermi jumped by 11.92 percent on Tuesday to close at $10.05 apiece after an investment firm reaffirmed its bullish stance for the stock.

In its coverage, Berenberg lowered its price target for Fermi Inc. (NASDAQ:FRMI) to $35 from $37 previously, but maintained a “buy” recommendation. The new figure marked a 248 percent upside potential from its latest closing price.

The rally came despite pressure from shareholder law firms over an ongoing class action lawsuit in relation to its alleged misinformation about tenant demand for the 11-GW Project Matador project campus; that the project would only rely on a single tenant’s funding commitment to finance the construction; and significant risks that the tenant would terminate the funding commitment, among others.

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Just recently, Fermi Inc. (NASDAQ:FRMI) announced progress to the project, with Front-End Engineering Design activities now underway, including site layout planning, cooling system evaluations, and cost and schedule development.

Fermi Inc. (NASDAQ:FRMI) also successfully raised $500 million in fresh funds through a loan from MUFG Bank Ltd., proceeds of which will be used to support the development of Project Matador, and its target of delivering an initial 2.3 GW of power.

A portion will be used for the acquisition of three F-class gas turbines from Siemens Energy, while the balance will be allocated for the repayment of existing loans, as well as the delivery, completion, and deployment of additional turbines within its fleet within the first half of the year.

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