Ormat Technologies Inc . (NYSE:ORA) stock has reached a new 52-week high, touching $82.4 amidst a robust year of growth. The renewable energy company, known for its geothermal, recovered energy, and storage solutions, has seen its stock soar, reflecting a significant 1-year change with an impressive 27.62% increase. Investors have shown increased confidence in Ormat's business model and growth strategy, as the company continues to capitalize on the global shift towards sustainable energy sources. This milestone underscores the market's recognition of Ormat's potential in the renewable energy sector and its consistent performance over the past year.
In other recent news, Ormat Technologies has seen significant developments in its operational and financial performance. The renewable energy company has begun operations at its largest energy storage facility, the 80MW/320MWh Bottleneck project, serving San Diego Gas & Electric under a 15-year Power Purchase Agreement. Additionally, Ormat has entered into two seven-year tolling agreements with Equilibrium Energy for energy storage facilities in Texas, marking its initial entrance into the ERCOT market.
These strategic developments accompany a robust financial growth for the company, with revenues up by 21%, earnings per diluted share rising by 25.5%, and a 14.4% increase in adjusted EBITDA. In response to these positive trends, Roth/MKM has increased its price target for Ormat Technologies shares to $87.00, maintaining a Buy rating, while Oppenheimer has adjusted its price target to $85.00, keeping an Outperform rating.
Ormat also revised its CapEx budget for 2024 up to $550 million to $570 million due to heightened demand for storage projects. These recent developments underscore Ormat's commitment to expanding its energy storage portfolio and its strategic positioning within the renewable energy sector.
InvestingPro Insights
Ormat Technologies Inc.'s recent achievement of a new 52-week high aligns with several key metrics from InvestingPro. The company's stock is currently trading at 99.77% of its 52-week high, confirming the article's observation of reaching $82.4. This performance is further supported by impressive returns across various timeframes, with a 27.54% 1-year price total return as of the latest data.
InvestingPro Tips highlight that Ormat has maintained dividend payments for 20 consecutive years, demonstrating financial stability that likely contributes to investor confidence. Additionally, the company is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.92, suggesting potential value for investors despite the stock's recent highs.
The company's revenue growth of 16.43% over the last twelve months and a healthy EBITDA of $431.97 million indicate strong operational performance, underpinning the stock's upward trajectory. These figures provide context to the market's positive sentiment towards Ormat's business model and growth strategy in the renewable energy sector.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 7 more tips available for Ormat Technologies on the platform.
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