ORA - Ormat Tech started at Equal Weight at Barclays as established geothermal player

2023-05-22 13:53:04 ET

Ormat Technologies ( NYSE: ORA ) +1.6% in Monday's trading as Barclays initiates coverage with an Equal Weight rating and $89 price target, seeing the company as an established geothermal industry player "well positioned to benefit from the renewed industry focus, which could be set for a shale-like revolution supported by the O&G market."

While geothermal has been considered a niche market limited by geography, "there has been renewed focus on the industry over the past few years, primarily driven by the increasing demand for firm/clean renewable and the emergence of the unconventional geothermal market," Barclays analyst Derek Podhaizer said, seeing multiple catalysts for the industry over the next few years, which should benefit Ormat ( ORA ).

Among catalysts that Podhaizer said could spark more excitement on the stock: further clarity of IRA benefits; additional legislation to drive geothermal adoption similar to the CPUC; permitting reform that would bring geothermal power plants online more quickly; and the company's growing Energy Storage unit driving multiple expansion.

More on Ormat Technologies:

• Financial and valuation comparison to sector peers
• Analysis: Ormat Technologies: New Geothermal Projects, Good Guidance, And Undervalued
• Stock price return: Down less than 1% YTD, up 8% in the past 12 months

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