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Ormat Technologies shares fell in morning trading after UBS downgraded the geothermal energy company to Neutral from Buy and cut its price target to $100 from $157, citing limited earnings upside through 2028 and valuation multiples that have converged with industry peers. UBS analyst Jon Windham said the firm sees limited upside to earnings through 2028E and limited earnings upside risk through 2029E.
The downgrade followed Ormat’s Sept. 8 investor day, where management lowered its 2028 adjusted EBITDA run-rate outlook by 3%. UBS also cut its estimated four-year revenue CAGR for Ormat’s energy storage segment to 24% from 32% for 2026-2030 and now expects adjusted EBITDA growth to slow to 9% in 2027 from 13% in 2026. Jefferies maintains a $117 price target with a Hold rating, while Oppenheimer and RBC remain more bullish.
$ORA
