First Brands Group debt targeted by Apollo Global Management - report
Investing.com - Piper Sandler raised its price target on Ormat Technologies (NYSE:ORA) to $90.00 from $78.00 on Tuesday, while maintaining a Neutral rating on the renewable energy company’s stock. The stock currently trades at $92.02, near its 52-week high of $92.07, with a market capitalization of $5.58 billion.
The price target increase reflects the improving regulatory environment and growing demand for AI-related baseload power generation, which have driven a significant re-rating of the company. Ormat shares have risen 33% year-to-date, outperforming both the SPGTCED Index (+22%) and S&P 500 (+10%).
Piper Sandler adjusted its valuation model by reducing the development company discount rate to 10% from 13.5%, citing a de-risked project pipeline. The firm also increased its Electricity/Energy Storage and Product OpCo TTM EV/EBITDA multiples to 12.75x and 7x from 11x and 6x, respectively.
These valuation changes resulted in a blended 2026 EV/EBITDA multiple of 12.5x, up from the previous 11x, supporting the higher price target despite relatively unchanged earnings estimates.
The analyst noted that Ormat’s EV/EBITDA for 2026 has expanded twofold to 12.5x, returning to levels last seen in 2022, driven by regulatory support and continued strong demand from the artificial intelligence sector.
In other recent news, Ormat Technologies has reported strong second-quarter 2025 results, surpassing consensus expectations for both revenue and earnings. This positive performance led Oppenheimer to raise its price target for the company to $100, maintaining an Outperform rating. Additionally, Ormat has completed the acquisition of the Blue Mountain geothermal power plant for $88 million, expanding its operations in Nevada. The plant, which operates under a power purchase agreement with NV Energy, was originally constructed using Ormat’s technology.
Analyst firms have shown increased confidence in Ormat, with UBS reiterating a Buy rating and setting a price target of $105. Meanwhile, Baird upgraded the stock from Neutral to Outperform, citing growing political support for geothermal energy in the United States. Jefferies also raised its price target to $97, highlighting favorable Senate draft legislation for geothermal and storage technologies. These developments reflect a positive outlook for Ormat Technologies in the renewable energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.