Ormat Technologies (ORA) Price Target Raised by $3

Ormat Technologies, Inc. (NYSE:ORA) is included among the 11 Best Performing Energy Stocks in 2025.

Ormat Technologies (ORA) Price Target Raised by $3

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Ormat Technologies, Inc. (NYSE:ORA) is a leading geothermal power company and the only vertically integrated company engaged in geothermal and recovered energy generation, as well as energy storage solutions.

Ormat Technologies, Inc. (NYSE:ORA) received a boost on December 18 when Piper Sandler raised its price target on the stock from $102 to $125, while maintaining an ‘Overweight’ rating on the shares. The revised target represents an upside potential of over 10% from the current share price.

Piper Sandler noted that while the energy sector had a tough year in 2025, it remained tenacious and focused on finding alternative growth avenues. While the firm continues to be selective in 2026, it sees various cyclical tailwinds beginning to mount, including Saudi Arabia/Mexico getting back to work and a bottoming land market in the US. However, the analyst doesn’t expect the offshore sector to recover before 2027.

Nearly every sub-sector of the power industry has posted significant gains this year, driven by record electricity demand due to the AI boom and its data centers. The rally has also extended to less conventional sources of electricity generation, including geothermal. As a result, the share price of Ormat Technologies, Inc. (NYSE:ORA) has surged by over 63% so far this year, helped by the company’s efforts to renew power-purchase agreements with data center operators at more favorable prices when the current contracts expire. Given the high demand, the geothermal energy operator aims to achieve a portfolio capacity target of 2.6-2.8 GW by the end of 2028.

While we acknowledge the potential of ORA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORA and that has a 100x upside potential, check out our report about the cheapest AI stock.

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