H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Orion Energy Systems today and set a price target of $20.00.
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Amit Dayal has given his Buy rating due to a combination of factors including Orion Energy Systems’ consistent financial improvements and strategic initiatives. The company reported a fourth consecutive quarter of positive adjusted EBITDA, driven by enhanced pricing, an improved revenue mix, and effective cost management, resulting in gross margins rising to 31% in F2Q26 from 23.1% in the previous year.
Additionally, Orion’s management has set ambitious milestones for the upcoming quarters, such as achieving $84 million in revenue while maintaining positive adjusted EBITDA by the end of the fiscal year. The company’s confidence is bolstered by a strong pipeline and significant contract renewals, including a three-year deal with a major retailer. Furthermore, Orion’s compliance with the Build America Act positions it favorably in the current manufacturing-focused economic environment. Despite potential macroeconomic challenges, the long-term outlook for Orion remains optimistic, supporting the Buy rating.