Ormat Technologies: Buy Rating Backed by Strong Pricing Trends and Long-Term Financial Targets

Analyst Julien Dumoulin Smith from Jefferies reiterated a Buy rating on Ormat Techno (ORA – Research Report) and increased the price target to $86.00 from $78.00.

Julien Dumoulin Smith has given his Buy rating due to a combination of factors including favorable power pricing and strong long-term financial targets. Ormat Technologies is expected to benefit from robust pricing trends, with management indicating prices above $100/MWh, which supports the company’s financial outlook through 2028.
Moreover, the potential for recontracting and negotiations with hyperscalers for 250MWs adds further upside potential. Although there are project delays from 2025 to 2026, the company has reiterated its long-term capacity goals, and the safe harbor program secures geothermal projects through 2028. These factors, along with an updated price target of $86, underpin the Buy rating.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ORA in relation to earlier this year.