Stock Analysis

Ormat Technologies (ORA): Exploring Valuation After Strong Recent Share Price Gains

Ormat Technologies (ORA) shares have been on the move recently, catching the eye of investors interested in clean energy and utilities. The stock’s climb over the past month stands out compared to broader market trends.

See our latest analysis for Ormat Technologies.

Ormat Technologies’ impressive 13.7% share price return over the past month has fueled investor optimism, especially when viewed alongside a robust 50.4% year-to-date gain. While the pace has picked up recently, the one-year total shareholder return of 36% reflects solid momentum building behind the company in both the short and long term.

If this sort of price strength sparks your interest, you can expand your search and discover fast growing stocks with high insider ownership

Yet with shares trading just above their average analyst price target despite strong gains, the key question now is whether Ormat Technologies still offers hidden value or if the market has already taken all its growth potential into account.

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Most Popular Narrative: 6% Overvalued

With Ormat Technologies closing at $103.96 and the most-followed narrative estimating a fair value of $98.10, sentiment points to a price that exceeds consensus projections. Analysts see rising hopes for future growth, but also factor in challenges that could test the company's premium valuation.

Recent federal permitting reforms and policy support have significantly expedited geothermal project development timelines in the U.S., enabling Ormat to accelerate greenfield expansion and release more projects for construction. This is likely driving faster revenue growth and increased long-term cash flows.

Read the complete narrative.

Want to unravel why experts are betting on regulatory tailwinds to turbocharge Ormat’s future revenues? The full narrative cracks open the boldest forecasts, controversial margin assumptions, and the hotly debated future multiple under the hood. Which number triggered a six percent “premium” call? Get the inside story now.

Result: Fair Value of $98.10 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, factors such as new U.S. regulations on battery sourcing or operational hiccups could dampen Ormat’s earnings momentum in the future.

Find out about the key risks to this Ormat Technologies narrative.

Build Your Own Ormat Technologies Narrative

If you see the numbers differently or want to dive deeper into the data, you can craft your own perspective in just a few minutes. Do it your way

A great starting point for your Ormat Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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About NYSE:ORA

Ormat Technologies

Engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, Guadeloupe, New Zealand, Honduras, France, Indonesia, the Philippines, and internationally.

Questionable track record with very low risk.

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