Hold Rating On Ormat Techno Amid Strong Growth And Adjusted 2023 Guidance
Energy sector company Ormat Techno ( ORA - research report) was reviewed by Wall Street analysts yesterday. TD Cowen analyst Jeff Osborne maintained a neutral rating on the stock with a $74.00 price target.
Jeff Osborne's Hold on Ormat Techno (ORA) is influenced by several factors. The company reported strong year-over-year growth of 18 percent with revenue of $208 million. Despite the consensus, this increase was mainly driven by a 64% year-over-year increase and a 26% increase in inventory. Ormet continues to occupy an important position in the geothermal sector. It is hoped that the situation in Israel will not delay production, although it could worsen in the future.
However, Osborne said the high-level guidance for 2023 was based on a number of parameters. FY23 revenue was $825 million to $838 million from $823 million to $858 million. Power revenue was adjusted to $125-130 million from $120-135 million, while manufacturing revenue fell to $30-33 million from $33-38 million. The company's product portfolio grew to $192 million, the highest level since Q2, continuing Ormat's growth trajectory. Ormat recently entered into an agreement to purchase assets from NL Green Power's North American portfolio, which will close in Q3 and contribute to the company's MW portfolio in Q3. A combination of these factors led Osborne to give Ormat Techno a Hold rating.
In another report on November 6, Barclays maintained the stock with Hold rating and $82.00 price target.
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Description of Ormat Techno (ORA):
Ormat Technologies Inc. A geothermal and renewable energy company. It operates in the following segments: Energy, Products, etc. The Electric Division develops, manages, owns and operates geothermal and geothermal power plants in the United States. The product segment designs, manufactures and sells geothermal and renewable energy-based power generation equipment and remote power components, and provides engineering, procurement, construction, operation and maintenance services for geothermal and renewable energy-based power plants. Another segment Energy Storage, Demand Response and Energy Management provides energy storage, demand response and energy management services. The company was founded in 1965 and is headquartered in Reno, NV.
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