Fervo Energy falls after Jefferies cuts PT to $25, calls Google PPA a 're-optimization'

Fervo Energy

03/09/2026 15:04

** Shares of geothermal energy developer Fervo Energy FRVO.O fall nearly 3% to $17.48 
** Jefferies cut PT to $25 from $34; reiterates "buy" as brokerage believes tech de-risk event could support a re-rating
** New PT still implies a 39% upside to stock's last close
** Brokerage says Google PPA is viewed as a re-optimization rather than incremental growth
** Says it's just re-routing capacity that was already planned for California, not adding fresh growth on top of prior plans
** Co on Tuesday said it had signed a deal to supply 396 megawatts of geothermal power to Alphabet's Google from its Cape Station project in Utah
** Brokerage cuts 2028-2029 forecasts and lowered expectations for future projects
** 11 of 12 brokerages rate the stock "buy" or above, 1 "hold"; median PT at $46 - data compiled by LSEG
** Since its IPO in May, stock has fallen 52% 

(Reporting by Miraanta Lowrance in Bengaluru)
((miraanta.lowrance@thomsonreuters.com))