In a report released today, Julien Dumoulin Smith from Bank of America Securities reiterated a Hold rating on Ormat Techno (ORA – Research Report), with a price target of $71.00.
Geoff Meacham has given his Hold rating due to a combination of factors including Ormat Technologies’ (ORA) growth trajectory and valuation metrics. While ORA is expanding its battery storage capabilities, aiming for a significant increase by the end of 2025, this is only projected to contribute around 10% to the company’s consolidated EBITDA forecast. Despite the company’s management setting a higher EBITDA target for 2026, Meacham’s estimates remain below this range, indicating that while growth is expected, it might not be as robust as management predicts. Additionally, the market consensus for 2026 appears optimistic compared to his more conservative forecast.
Moreover, the recent acquisition by ORA, which is expected to contribute to earnings, has led to an adjustment in the estimates for 2024, coming in lower than the market’s expectations. This, along with the potential for renegotiations in Kenya and associated risks, contributes to the perception of 2024 as a transition year with potential guide pressure. The Neutral rating is further supported by the current valuation, which is seen as fair when considering the future earnings projections. Meacham’s price objective reflects moderated growth expectations and an updated discount rate, which takes into account both the development and operational sides of ORA’s business.
In another report released on January 8, J.P. Morgan also maintained a Hold rating on the stock with a $76.00 price target.
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Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ORA in relation to earlier this year.
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Ormat Techno (ORA) Company Description:
Ormat Technologies, Inc. is a holding company, which engages in the provision of geothermal and recovered energy power business. It operates through the following segments: Electricity, Products, and Other. The Electricity segment develops, builds, owns, and operates geothermal and recovered energy-based power plants in the United States, and geothermal power plants in other countries. The Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation and remote power units, and provide services relating to the engineering, procurement, construction, operation and maintenance of geothermal and recovered energy-based power plants. The Other Segment segment offers energy storage, demand response and energy management related services energy storage, demand response, and energy management related services. The company was founded in 1965 and is headquartered in Reno, NV.
Read More on ORA:
- Ormat Technologies closes acquisition of assets from EGPNA
- Ormat Completed the Acquisition of Contracted Operating Geothermal and Solar Assets From Enel Green Power North America
- Ormat Technologies price target lowered to $92 from $95 at UBS
- Ormat Secures 15-Year Energy Storage Service Agreement With San Diego Community Power for Pomona 2 Energy Storage Facility
- Ormat Technologies secures 15-yaer energy storage service agreement with SDCP
