Update shared on08 Oct 2025
Fair value Increased 3.70%Analysts have raised their price target for Ormat Technologies from $94.60 to $98.10, citing subtle improvements in projected revenue growth as well as a slight decrease in the discount rate applied to future cash flows.
What's in the News
- Ormat commenced commercial operations at its Lower Rio energy storage facility in Texas. This adds 60MW/120MWh of battery storage capacity and includes a seven-year tolling agreement. (Key Developments)
- The company secured approximately $25 million through a Hybrid Tax Equity partnership with Morgan Stanley Renewables. This monetizes the 40% Investment Tax Credit associated with the Lower Rio project. (Key Developments)
- Ormat signed a strategic agreement with Sage Geosystems to pilot advanced Pressure Geothermal technology at an existing Ormat plant. The agreement includes plans to accelerate development of next-generation geothermal energy. (Key Developments)
- The company extended its power purchase agreement for 25 years with Southern California Public Power Authority. This ensures a continued clean energy supply from the Heber 1 geothermal facility through 2052. (Key Developments)
- Ormat provided revenue guidance for 2025, projecting total revenues between $935 million and $975 million. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $94.60 to $98.10 per share.
- Discount Rate has decreased modestly from 8.12% to 8.04%.
- Revenue Growth projections have increased marginally, moving from 9.37% to 9.41%.
- Net Profit Margin has edged down slightly, changing from 14.48% to 14.47%.
- Future P/E multiple is higher, moving from 42.5x to 43.9x.
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