** FRVO shares debuted at $36 on May 13 after a $1.9 billion IPO priced at $27. The stock, which traded as high as $42.65 on May 15, hit an intraday low of $22.50 on Friday.
** The Houston, Texas-based company is backed by Bill Gates' investment firm Breakthrough Energy Ventures and shale producer Devon Energy DVN.N.
** Eleven of 12 analysts rate the stock strong buy or buy, while one rates it hold; the median price target is $47, according to LSEG data.
Jefferies turns bullish on Fervo Energy after post-IPO decline
** Fervo Energy's FRVO.O shares were up 5.4% premarket on Monday to $25.97 after Jefferies upgraded the geothermal energy developer to buy from hold, citing the stock's approximately 40% drop from its May IPO highs.
** Despite no disruption to FRVO's timeline or material updates from management, investors seem to be grouping FRVO with high-beta nuclear peers such as X-Energy XE.O, Oklo OKLO.N and Nuscale Power SMR.N, Jefferies wrote in a note.
** While long-duration stories with commercialization timelines five-plus years away have fallen out of favor amid AI-bubble concerns and geopolitical uncertainty, Jefferies argued the high-risk/long-term reward comparison is unfair.
** Jefferies remained constructive on FRVO's Phase 1 commercial operation date timing, expected later this year, adding that the stock's valuation does not capture near-term catalysts or the potential for the company to more than double U.S. geothermal capacity within 5-10 years.
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