Data center REIT Fermi wobbles; IPO banks weigh in with bullish ratings

Shares of data center real estate investment trust Fermi FRMI.O down 0.7% at $23.37 on Mon after analysts at banks that underwrote its IPO issue bullish reports after quiet period ceases

FRMI shares had been up as much as 9% before slipping into negative territory in late morning trading

Amarillo, Texas-based AI infrastructure firm co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry saw its stock close at $32.53 in debut on Oct 1 after ~$683 mln IPO priced at $21

UBS, one of the IPO lead bookrunners, starts coverage at 'buy' with $30 PT, pointing to the pre-revenue startup's plans to build 11GW of power generation (5 natural gas, 6 nuclear) with the first GW coming online in 2026

Mizuho initiates at 'outperform' and $27 PT, saying a key differentiator is FRMI intends to be both a landlord and power gen co, with ability to deliver power off the grid and at scale

Stifel starts at 'buy' and $29 PT, highlighting co's 99-year land lease from Texas Tech University with necessary access to water, nat gas infrastructure, fiber to transmit, and management team with "deep political ties" in the state that should help the approval process

Other research initiations and PTs include Macquarie ('outperform', $35) and Berenberg ('buy', $37)

Early Mon, Fermi announced a nuclear deal with South Korean industrial firms Doosan Enerbility and Hyundai Engineering & Construction ahead of U.S. President Donald Trump's visit to the country this week