The Tech sector is one of the strongest in the stock market. There are numerous different stocks – medical, internet, car-making, various technologies, and so many more. Lots of them are quite profitable as new and interesting features are always in demand. Some even gain millions in profit.
Ormat Technologies is a renewable and alternative energy provider. It is based in Nevada and operates around the world. The company owns more than 150 power plants generating over 2,000 megawatts of power in 30 countries. As a result, Ormat is a major provider of geothermal energy in Honduras, Kenya, Guatemala, and the U.S.
Despite the economy’s struggles, we all need power. Ormat used that situation to keep earnings up during the pandemic crisis. The company’s first-quarter results surpassed forecasts, coming in at 51 cents per share. On the other hand, revenues lowered year-over-year by 3.5% to $192.1 million.
That loss reflected in the share value, which fell by 17% year-to-date. Ormat has also underperformed in the broader markets. But, ironically, that increases the value potential of the stock. Ormat’s electricity segment, which is about half of the total business, features high margins, giving the firm a strong foundation for future income.
Mark Strouse, JPM’s analyst, evaluated this company’s pros and cons and decided that it is a Buy. He believes that Ormat is one of the higher-quality stocks in the Alt Energy coverage universe.
Strouse’s view is based on relative balance sheet strength, as well as earnings power and visibility, which originates in the shift toward ownership and operation of a diversified portfolio of geothermal projects.
Thus, Strouse upgraded his stance on Ormat shares, shifting them from Neutral to Buy. His price target is $82, implying a 32% upside.
Two other analysts reviewed Ormat as well, giving it one Buy and one Hold rating and setting the consensus view at Moderate Buy.
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General Information Broker Name: BTN Centre Broker Type: Forex & CFDs Country: UK Operating since year: N/A Regulation: N/A Address:…
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