Ormat Technologies' (ORA) 2030 targets imply a rebound in electricity segment gross margins to the historical 40% range, which is achievable as forward pricing supports mix improvements, while robust hydrothermal and storage development supports portfolio growth, Oppenheimer said in a Wednesday research report.

For 2028, the brokerage said it expects revenue of $1.22 billion and EBITDA of $765 million.

Enhanced geothermal systems opportunities are becoming concrete as the company plans for commercial drilling at the 280-megawatt Dixie Valley project within the next two years, with a goal of 1 gigawatt of EGS operating capacity by 2033 to 2035, analysts wrote.

The company has an organic runway for traditional hydrothermal development, as its pipeline includes 48 prospect sites, with potential capacity of 0.75 gigawatt to 1.5 gigawatts, and management targeting two to four project completions per year, according to the note.

The brokerage said it reiterated its outperform rating on the stock and boosted its price target to $145 per share from $141.

Price: 100.22, Change: -7.76, Percent Change: -7.18