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Investing.com - Jefferies has raised its price target on Ormat Technologies (NYSE:ORA) to $125.00 from $120.00 while maintaining a Buy rating following the company’s third-quarter results. The stock currently trades at $108.55, having surged over 52% in the past six months according to InvestingPro data, with analysts’ targets ranging from $100 to $135 per share.
The renewable energy company delivered solid third-quarter performance with revenue exceeding Street expectations by 6% and adjusted EBITDA beating estimates by 2%, according to Jefferies. The outperformance was driven by better-than-expected results in the Storage and Product segments, which offset weakness in the core Electricity business. Ormat reported $944.25 million in revenue over the last twelve months, representing 6.07% growth year-over-year.
Management has raised its full-year 2025 revenue guidance by less than 2% and adjusted EBITDA guidance by approximately 1%, reflecting continued strength in the Product and Storage segments expected through the fourth quarter. The Electricity segment faces a negative impact of approximately $20 million for fiscal year 2025. Despite these challenges, InvestingPro data shows Ormat has maintained dividend payments for 21 consecutive years, with a current dividend yield of 0.44%.
Jefferies noted that while the beat and raise were modest, they demonstrate Ormat’s effective diversification strategy across Product and Storage segments, which helps support the core Electricity business and offset unexpected softness. This diversification has proven valuable given historical volatility from unplanned curtailments in the Electricity segment.
The new price target of $125 per share includes a $97 per share valuation on the operating portfolio (including Product), approximately $51 per share on the development company, offset by a net corporate debt impact of -$23 per share.
In other recent news, Ormat Technologies reported its third-quarter 2025 earnings, surpassing market expectations. The company achieved an earnings per share of $0.41, exceeding the forecasted $0.3859, resulting in a 6.25% surprise. Revenue for the quarter also surpassed expectations, coming in at $249.7 million against the anticipated $234.3 million, marking a 6.59% revenue surprise. Following these results, Ormat Technologies raised its full-year 2025 guidance, attributing the positive outlook to strong performance in its Products and Storage segments. In light of these developments, Oppenheimer raised its price target for Ormat Technologies to $125.00, up from $120.00, while maintaining an Outperform rating. These recent developments reflect a strong outlook for the company as it continues to exceed earnings and revenue forecasts.
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