Fermi’s shares (FRMI) plunged another 15% in Monday’s pre-market session despite the energy infrastructure startup launching the “Fermi 2.0 strategic evolution” plan. The company announced the plan after the departure of co-founder and CEO Toby Neugebauer triggered a more than 28% selloff in Friday’s extended trading.
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Fermi Appoints Former Dell CCO as Chair
A key part of the plan is establishing a refreshed leadership team, including appointing Marius Haas, a former president and chief commercial officer (CCO) at Dell Technologies (DELL), as the new board chair, and the creation of a new Office of the CEO to provide temporary operational leadership.
Moreover, Fermi plans to formally document binding commitments for the first set of client-tenants for Project Matador, Fermi’s massive AI data center campus being built in Amarillo, Texas. The project is also known as the President Donald J. Trump Advanced Energy and Intelligence Campus.
Fermi went public in October, raising $746 million from its initial public offering to help enterprises optimize their power usage, improve operational efficiency, and reduce outages across critical infrastructure. The company was co-founded by American politician and former U.S. energy secretary, Rick Perry, entrepreneur Toby Neugebauer, and co-founder of Grey Rock Investment Partners Griffin Perry.
Fermi Names Interim Leadership
The new Office of the CEO is to be managed by Jacobo Ortiz Blames, the company’s former chief operating officer, and Anna Bofa, a previous board advisor — the two have also been appointed as co-presidents of the company. Both will jointly handle tasks previously executed by Toby Neugebauer, while the company searches for a new chief executive.
Meanwhile, as part of the “transition from start-up to scaled enterprise,” Fermi said it is actively engaging the Texas Tech University System (TTUS) to “extend certain milestones” in the lease agreement for Project Matador.
Is Fermi a Good Stock to Buy?
On Wall Street, Fermi’s shares have a Strong Buy consensus rating from analysts. This is based on seven Buys issued over the past three months.
Moreover, the average FRM price target of $20.67 suggests about 216% upside from current trading levels.
