Hold Rating On Ormat Techno Amid Strong Growth And Adjusted 2023 Guidance
Energy sector company Ormat Techno ( ORA - Research Report ) was covered by Wall Street analysts yesterday. TD Cowen analyst Jeff Osborne has a neutral price target of $74.00 on the stock.
They influence Jeff Osborne's hold rating on Ormat Techno (ORA). The company posted 18 percent year-over-year growth with revenue of $208 million. Although below consensus estimates, the growth was primarily driven by a 64 percent year-over-year increase in production and a 26 percent increase in inventory. Ormat continues to hold a strong position in the geothermal sector, which has spurred investment and technological advances as the adjusted cost of electricity (LCOE) declines and oil and gas companies enter the market. Although it may increase in the future, production is not expected to be delayed due to the current situation in Israel.
However, Osborne stated that the latest forecast for 2023 will be influenced by several indicators. FY23 revenue dropped from $823-858 million to $825-838 million. Electricity revenue was adjusted from $125 million to $130 million from $120 million to $135 million, and product revenue was down from $30 million to $33 million from $33 million to $38 million. The company's product support grew to $192 million, the highest since 2Q19, supporting Ormat's growth trajectory. In addition, Ormat recently signed an agreement to acquire Enel Green Power North America's asset portfolio, which will be closed from 1 to 24 and will contribute to the company's MW portfolio from 2 to 24. To give Ormat Techno shares a Hold rating.
In the year In another report released on November 6, Barclays also maintained a Hold rating on the stock, setting a price target of $82.00.
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Information about the organization Ormat Techno (ORA):
Ormat Technologies Inc. is a holding company for geothermal energy supply and renewable energy sources. It operates in the following sectors: Energy, Products and others. The Electric Services segment develops, operates, owns and operates geothermal and renewable energy plants and geothermal power plants in the United States. The Product segment designs, manufactures and markets geothermal and renewable energy generation equipment and remote energy components, and provides services related to the design, acquisition, construction, operation and maintenance of geothermal and renewable energy sources. Another segment The segment provides services related to energy storage, demand response and energy management, energy storage, demand response and energy management. The company was founded in 1965 and is headquartered in Reno, Nevada.
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