Ormat Technologies (ORA) Stock Price Target Raised on Strong AI Power Demand

Ormat Technologies, Inc. (NYSE:ORA) ranks among the best performing utilities stocks to buy now. On August 19, Piper Sandler maintained its Neutral rating on Ormat Technologies, Inc. (NYSE:ORA) while increasing its price target to $90 from $78. The upgrade reflects an improved regulatory environment and the increasing demand for baseload power generation related to AI.

Piper Sandler cited a de-risked project pipeline as justification for altering the development company discount rate from 13.5% to 10% in its valuation model. The firm also raised its Product OpCo TTM EV/EBITDA multiple to 7x and its Electricity/Energy Storage multiple to 12.75x.

The firm further stated that legislative backing and the ongoing high demand from the artificial intelligence industry have caused Ormat’s EV/EBITDA for 2026 to double to 12.5x, reaching levels last seen in 2022.

Ormat Technologies, Inc. (NYSE:ORA) is a leading geothermal company that develops, produces, and offers sustainable energy solutions.

While we acknowledge the potential of ORA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.