Ormat Technologies (ORA) is positioned for continued earnings growth through 2030, supported by strong demand for geothermal and energy storage, while its development pipeline is largely de-risked, RBC Capital Markets said.
The brokerage said in a Tuesday note that Ormat's 2030 outlook targets revenue of $1.5 billion to $1.6 billion and adjusted EBITDA of $1 billion to $1.1 billion, up 57% and 80%, respectively, from 2025, with potential upside from EGS programs not included in the outlook.
Management's portfolio could reach 3.5 gigawatts to 3.7 gigawatts by 2030, with 30% of geothermal assets and 44% of storage prospects uncontracted, offering upside from stronger power purchase agreement pricing, the report said.
The analyst highlighted Ormat's EGS plans, with 25 megawatts at Dixie Valley targeted for commercial operation by 2029 to 2030, followed by 75 megawatts by 2030 to 2031 and potentially 280 megawatts by 2032, subject to interconnection.
RBC reiterated its $130 price target on Ormat Technologies, with an outperform rating.
Ormat Technologies shares were down 7% in Wednesday trading.
Price: $100.42, Change: $-7.55, Percent Change: -6.99%