
Ormat Technologies (ORA) Stock Forecast & Price Target
Ormat Technologies (ORA) Analyst Ratings
Bulls say
Ormat Technologies Inc. is experiencing a notable improvement in its Product Segment, with EBITDA contribution projected to reach $35 million in 2024, up significantly from an average of $15 million per year from 2021 to 2023. The expansion of EV/EBITDA multiples by over 2x this year indicates a positive valuation re-rating for the company. Additionally, the ambitious 2028 target for Energy Storage EBITDA, aiming for $105-110 million, reflects Ormat's strategic efforts to enhance revenue stability by increasing fixed contract exposures to mitigate volatility in merchant pricing.
Bears say
Ormat Technologies has indicated a significant backlog in their Product Segment, increasing from an average of $150 million to $340 million by the end of 2024. However, the company faces considerable risks that may impede its performance, including slow adoption of Enhanced Geothermal Systems (EGS), potential delays in geothermal project approvals and constructions, and concerns over price renegotiations for Power Purchase Agreements (PPAs) that may fall below expectations. Additionally, the company's reliance on tax credits, which are scheduled to phase down after 2033, presents further uncertainty that could negatively impact future revenue and growth.
This aggregate rating is based on analysts' research of Ormat Technologies and is not a guaranteed prediction by Public.com or investment advice.
Ormat Technologies (ORA) Analyst Forecast & Price Prediction
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