Amit Dayal, an analyst from H.C. Wainwright, maintained the Buy rating on Orion Energy Systems (OESX – Research Report). The associated price target is $3.00.
Amit Dayal has given his Buy rating due to a combination of factors that suggest potential for growth and improved financial performance at Orion Energy Systems. The company has shown progress in enhancing its profitability, as evidenced by an increase in gross margins to 29.4% for F3Q25, compared to previous quarters. This improvement is attributed to effective cost management and pricing strategies in their maintenance and lighting segments.
Moreover, Orion Energy Systems is undergoing a business reorganization to streamline operations and focus on sales and cost efficiencies by segmenting into Solutions and Partners. Despite a reduction in revenue projections for FY2025, the company’s proactive measures, such as reducing operating costs and senior management taking pay cuts, indicate a commitment to enhancing financial health. Furthermore, the limited exposure to federal contracts and a move towards reducing supply chain dependencies on China are seen as favorable strategic steps. These initiatives, combined with the potential for achieving steady positive EBITDA by FY2026, underpin Dayal’s optimistic outlook for the company.
According to TipRanks, Dayal is an analyst with an average return of -19.8% and a 26.13% success rate. Dayal covers the Industrials sector, focusing on stocks such as Plug Power, Broadwind Energy, and Ceco Environmental.