
Ormat Technologies (ORA) Stock Forecast & Price Target
Ormat Technologies (ORA) Analyst Ratings
Bulls say
Ormat Technologies Inc. is experiencing a significant improvement in its Product Segment, with EBITDA contributions anticipated to rise from an average of $15 million per year from 2021 to 2023 to $35 million in 2024. Additionally, the company has undergone a notable valuation re-rating, as indicated by a more than doubling of its EV/EBITDA multiples this year. Looking ahead, Ormat's ambitious target for Energy Storage EBITDA to reach between $105 million and $110 million by 2028 suggests strong growth potential, supported by an increasing focus on fixed contracts to stabilize pricing.
Bears say
Ormat Technologies Inc. faces significant challenges that could negatively impact its financial outlook, primarily due to slow adoption rates of Enhanced Geothermal Systems (EGS) and potential delays in obtaining approvals and constructing geothermal projects. The company's product backlog, which showed a notable increase to $340 million in Q4 2024 after an average of $150 million from Q3 2022 to Q3 2024, may not translate into expected revenue growth, especially with risks such as Chinese tariffs and geothermal power purchase agreement (PPA) repricing potentially affecting cash flows. Furthermore, while the extension of tax credits under the One Big Beautiful Bill could provide some support for projects, the gradual phase-down of these credits starting in 2034 raises concerns about the sustainability of future profitability.
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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