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Investing.com - Oppenheimer raised its price target on Ormat Technologies (NYSE:ORA) to $100.00 from $95.00 on Friday, while maintaining an Outperform rating on the renewable energy company. The new target represents potential upside from the current price of $87.33, though InvestingPro analysis indicates the stock is trading at premium valuations with a P/E ratio of 39.45.
The price target increase follows Ormat’s second-quarter 2025 results, which exceeded consensus expectations for both revenue and earnings. The company’s shares traded higher on Thursday after the earnings announcement, which included a reaffirmation of all aspects of its fiscal year 2025 guidance. The stock has demonstrated strong momentum, posting a 29.39% gain year-to-date, according to InvestingPro data.
Oppenheimer noted that Ormat is positioned for synchronous growth across its business segments in the near term, driven by momentum in its Products and Storage divisions, along with the lapping of curtailment and maintenance impacts in its Electricity segment.
The research firm highlighted that Ormat has enhanced its capacity to accelerate geothermal development, supported by the Offshore Bipartisan Balanced Budget Act (OBBBA), permitting reform, and increasing demand for firm power from data centers.
Oppenheimer characterized the current demand and regulatory environment as the strongest in Ormat’s history, leading the firm to raise its fiscal year 2025-2026 estimates alongside the price target increase.
In other recent news, Ormat Technologies has reported several significant developments. The company completed the acquisition of the Blue Mountain geothermal power plant in Nevada for $88 million. This facility, which operates under a power purchase agreement with NV Energy until the end of 2029, was originally built using Ormat’s technology. In terms of stock ratings, Baird upgraded Ormat Technologies from Neutral to Outperform, citing increased political support for geothermal energy in the United States. Similarly, Barclays (LON:BARC) upgraded the stock from Equalweight to Overweight, highlighting the growing demand for geothermal energy amid a U.S. power shortage driven by data center expansion.
Jefferies also raised its price target for Ormat to $97, maintaining a Buy rating, following favorable Senate draft legislation supporting geothermal and storage technologies. Additionally, Ormat has strengthened its executive team by appointing Aron Willis as Executive Vice President of the Electricity Segment and Daniel Moelk as Senior Vice President of Resources, Drilling, & EGS. These appointments aim to drive growth in Ormat’s electricity segment and enhance its Enhanced Geothermal System initiatives. These recent developments reflect Ormat’s strategic moves to capitalize on favorable policy environments and increasing energy demands.
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