Ormat Technologies Stock Drops Amid Downgrade and Reduced Earnings Guidance
Shares of Ormat Technologies (NYSE: ORA) fell by 2% on the first day of October trading, continuing a decline that began in September. The drop follows UBS downgrading its rating for Ormat from 'buy' to 'neutral,' with an updated price target of $100 per share compared to the previous $157. This downgrade reflects concerns over limited margin improvement and reduced 2028 EBITDA guidance by 3% during a September investor presentation. Ormat now forecasts revenue between $1.225 billion and $1.275 billion for 2028, with adjusted EBITDA expected to range from $750 million to $800 million. In contrast, the company reported $990 million in revenue and $582 million in adjusted EBITDA in 2025. Analysts suggest that Ormat's modest growth outlook combined with a high valuation—33.8 times forward earnings—makes it less attractive for new investors at this time. Investors interested in geothermal energy may be advised to consider renewable energy ETFs instead of direct investment in Ormat stock, as these funds offer diversified exposure and potentially lower risk.
Tickers: $ORA
Topics: earnings guidance geothermal energy stock price movement UBS analysis