Ormat Likely Faces Limited Earnings Upside, UBS Says

12:00 PM EDT, 10/01/2026 (MT Newswires) -- Ormat Technologies (ORA) is expected to see limited earnings upside through 2028 on the back of slower storage growth prospects, UBS Securities said in a report Thursday. The company revised down its 2028 adjusted EBITDA run-rate guidance by 3% during a recent investor day event, implying limited margin improvement until 2029, the report said. UBS analysts said they reduced their 2026-2030 compound annual growth rate estimate for the storage segment revenue to 24% from 32% previously. The analysts said they continue to expect solid execution in core geothermal business, but forecast 2027 adjusted EBITDA growth to decelerate to 9% from 13% expected for 2026, and anticipate limited earnings upside risk until 2029. They also said the stock is trading broadly in line with the peer-group median on an EV/EBITDA-to-growth basis, suggesting that the market is already pricing in its growth outlook. UBS downgraded Ormat to neutral from buy and cut its price target to $100 from $157, citing a balanced risk/reward profile. Price: 88.77, Change: -2.72, Percent Change: -2.98