Fervo Energy (NASDAQ:FRVO) Stock Rated "Overweight" in New Coverage at Morgan Stanley

Key Points

• Morgan Stanley initiated coverage of Fervo Energy with an “overweight” rating and a $23 price target, implying 176.11% upside from the stock’s $8.33 price.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $38.50, though targets have generally been reduced recently.
• Fervo reported a quarterly loss of $0.38 per share versus the expected $0.09 loss, while institutional investors—including Wellington Management and Value Aligned Research Advisors—established sizable positions.

Analysts at Morgan Stanley assumed coverage on shares of Fervo Energy (NASDAQ:FRVO - Get Free Report) in a research note issued on Thursday, Marketbeat reports. The firm set an "overweight" rating and a $23.00 price target on the stock. Morgan Stanley's price objective would indicate a potential upside of 176.11% from the stock's current price.

Several other equities analysts also recently commented on the stock. Johnson Rice initiated coverage on shares of Fervo Energy in a research note on Wednesday, September 23rd. They issued a "buy" rating and a $35.00 price target on the stock. Weiss Ratings initiated coverage on shares of Fervo Energy in a research note on Tuesday, August 18th. They issued a "sell (d)" rating for the company. JPMorgan Chase & Co. cut their price objective on shares of Fervo Energy from $38.00 to $27.00 and set an "overweight" rating for the company in a report on Monday, October 19th. Bank of America decreased their target price on shares of Fervo Energy from $36.00 to $30.00 and set a "buy" rating on the stock in a research report on Friday, September 25th. Finally, Jefferies Financial Group raised shares of Fervo Energy from a "hold" rating to a "buy" rating and lowered their target price for the stock from $41.00 to $34.00 in a report on Monday, July 20th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Fervo Energy presently has an average rating of "Moderate Buy" and a consensus price target of $38.50.

Fervo Energy Trading Down 4.0%

NASDAQ:FRVO opened at $8.33 on Thursday. The firm has a market cap of $2.46 billion and a PE ratio of -2.03. The business's 50 day moving average price is $14.21. The company has a debt-to-equity ratio of 0.08, a quick ratio of 8.62 and a current ratio of 8.62. Fervo Energy has a 1-year low of $7.72 and a 1-year high of $42.65.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($0.38) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.29). The business had revenue of $0.11 million during the quarter. As a group, sell-side analysts forecast that Fervo Energy will post -0.54 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Wellington Management Group LLP bought a new stake in Fervo Energy during the second quarter worth about $129,600,000. Value Aligned Research Advisors LLC acquired a new stake in Fervo Energy during the second quarter worth about $63,155,000. Robeco Schweiz AG grew its stake in Fervo Energy by 66.7% during the third quarter. Robeco Schweiz AG now owns 3,282,928 shares of the company's stock worth $44,615,000 after buying an additional 1,313,704 shares in the last quarter. Squarepoint Ops LLC acquired a new stake in Fervo Energy during the second quarter worth about $12,423,000. Finally, State Street Corp bought a new position in Fervo Energy in the 2nd quarter valued at about $10,028,000.

Fervo Energy Company Profile

Fervo Energy is a geothermal energy company developing enhanced geothermal systems designed to generate electricity from heat found deep beneath the earth's surface. The company applies techniques adapted from the oil and gas industry, including horizontal drilling and hydraulic stimulation, to create engineered geothermal reservoirs in areas where conventional geothermal resources may not be available.

Founded in 2017, Fervo combines advanced drilling, distributed fiber-optic sensing and reservoir engineering to evaluate and operate geothermal projects.

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