Fervo Boiling Point for Next-Gen Geothermal: Initiating at Overweight, Adding to AFL

Research evidence excerpt

Fervo Boiling Point for Next-Gen Geothermal: Initiating at Overweight, Adding to AFL

J P M O R G A N North America Equity Research

08 June 2026

Initiation

Fervo Overweight

FRVO, FRVO US

Boiling Point for Next-Gen Geothermal: Initiating at Price (05 Jun 26):$37.22

Overweight, Adding to AFL Price Target (Dec-27):$47.00

Clean Energy, Power Infrastructure,

and Sustainable Investing

Mark Strouse, CFA AC

(1-212) 622-8244

mark.w.strouse@jpmorgan.com

We are initiating coverage of FRVO with an Overweight rating and YE27 price Michael G Fairbanks

target of $47, and are adding the stock to the Analyst Focus List (Growth). Fervo (1-212) 622-4908

michael.fairbanks@jpmchase.com

(derived from the Latin for boiling) is an industry pioneer in enhanced geothermal

Anna Zhu

systems (EGS), a market that we believe is ripe to revolutionize the traditional

(1-212) 622-0012

geothermal and broader power markets, providing clean, baseload power. The anna.zhu@jpmorgan.com

founder-led company maintains a first mover advantage with strong operational J.P. Morgan Securities LLC

data from initial project activity, solid access to prime acreage, and leverages an

already established OFS supply chain. While we believe EGS has been simmering

for investors since the 2019 DoE GeoVision study (see our takeaways here), we Quarterly Forecasts (FYE Dec)

believe we are now reaching a boiling point and look for contract announcements Adj. EBITDA ($ mn)

2025A 2026E 2027E

and project execution to serve as positive catalysts, increasing visibility into Q1 (18) 2

ramping earnings over the next several years. Q2 (18) (1)

Q3 (18) (4)

• Next-gen geothermal presents opportunity to rapidly expand geothermal Q4 (11) 2

market. The US Department of Energy’s GeoVision study predicts that next- FY (49) (64) (1)