
Ormat Technologies (ORA) Stock Forecast & Price Target
Ormat Technologies (ORA) Analyst Ratings
Bulls say
Ormat Technologies Inc. has demonstrated a substantial increase in its Product Segment's EBITDA contribution, rising from an average of $15 million per year from 2021 to 2023 to a projected $35 million in 2024, indicating a significant upward trend in profitability. Additionally, the company's valuation has improved markedly, with EV/EBITDA multiples expanding more than twofold this year, reflecting heightened investor confidence. Furthermore, Ormat's ambitious target for its Energy Storage Segment aims for an EBITDA range of $105-110 million by 2028, promising more than double the current run-rate and positioning the company for continued growth through increased fixed contract exposure.
Bears say
Ormat Technologies is facing a negative outlook due to several fundamental challenges, including slow adoption rates of Enhanced Geothermal Systems (EGS) and potential delays in the approval and construction of geothermal projects, which could hinder revenue growth. The company's product backlog showed a significant increase to $340 million in 4Q24, yet past averages of $150 million from 3Q22 to 3Q24 highlight the volatility and uncertainty surrounding future earnings projections. Additionally, external factors such as potential Chinese tariffs and the risk of geothermal Power Purchase Agreements (PPAs) being repriced below expectations further dampen the financial outlook for Ormat Technologies's stock.
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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