Amit Dayal, an analyst from H.C. Wainwright, reiterated the Buy rating on Orion Energy Systems. The associated price target remains the same with $2.00.
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Amit Dayal has given his Buy rating due to a combination of factors that highlight Orion Energy Systems’ potential for growth and financial stability. Despite a slight decline in quarterly revenues, the company demonstrated strong gross margin improvements, reaching 30.1% compared to the previous year’s 21.6%. This improvement was attributed to strategic pricing, revenue mix, and cost management across its segments, which enabled Orion to achieve positive adjusted EBITDA for the third consecutive quarter.
Moreover, Orion’s management remains optimistic about maintaining gross margins near 30%, with expectations of a 5% year-over-year revenue growth for FY2026, despite challenges in the EV charging solutions segment. The company’s efforts to reduce its annual operating overhead by over $4 million have contributed to these positive financial outcomes. Additionally, Orion’s compliance with the Build America Act positions it favorably to benefit from the current administration’s focus on American manufacturing. These factors collectively support Amit Dayal’s Buy rating for Orion Energy Systems.
According to TipRanks, Dayal is an analyst with an average return of -6.9% and a 32.72% success rate. Dayal covers the Industrials sector, focusing on stocks such as Joby Aviation, Vertical Aerospace, and Archer Aviation.