Jeff Osborne, an analyst from TD Cowen, maintained the Hold rating on Ormat Techno (ORA – Research Report). The associated price target is $76.00.
Jeff Osborne has given his Hold rating due to a combination of factors that balance both positive and negative elements in Ormat Techno’s outlook. On the positive side, Ormat is expected to generate strong cash flow in 2025, largely due to significant tax benefits amounting to approximately $160 million. The company is also actively expanding its capacity to meet the growing demand from hyperscalers, with plans to secure power purchase agreements at competitive rates by 2028. Additionally, Ormat’s strategic safe harboring of geothermal projects through 2028 provides a level of security against potential market fluctuations.
However, there are challenges that temper the optimistic outlook. The ongoing curtailment due to maintenance on a transmission line in Nevada is projected to negatively impact revenue by up to $15 million in 2025. Furthermore, while the company is mitigating some risks through proactive measures, the broader regulatory environment remains uncertain, particularly with potential changes in the Inflation Reduction Act under the current administration. These factors contribute to the Hold rating as they present both opportunities and risks that could affect Ormat’s long-term growth and project viability.
In another report released yesterday, Piper Sandler also maintained a Hold rating on the stock with a $78.00 price target.
Based on the recent corporate insider activity of 35 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.