UBS analyst Jon Windham maintained a Buy rating on Ormat Techno today and set a price target of $135.00.
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Jon Windham has given his Buy rating due to a combination of factors that highlight Ormat Techno’s promising position in the market. The company is poised to benefit from the increasing demand for AI data centers, which is expected to drive up power purchase agreement (PPA) rates. This demand is supported by stable profit generation, making Ormat an attractive investment.
Furthermore, Ormat is engaged in negotiations for approximately 250MW of PPAs with hyperscalers and data centers, with anticipated rates exceeding $100/MWh. The potential for increased PPA rates, along with the expected growth in the company’s product segment through backlog conversion and new projects, contributes to the positive outlook. The revised price target of $135 reflects these factors and the potential for long-term upside from further PPA rate renegotiations.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $118.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ORA in relation to earlier this year.