Friday, June 7, 2013

Opinion:

Ormat Technologies' Moat Delivers Overseas (Morningstar.com)

Ormat Technologies (ORA) has rebounded nearly 40% off its lows in 2012, handily beating the S&P 500 and the Morningstar Utilities Index. Still, in today's yield-hungry market, it is one of the few firms in our domestic utilities coverage universe to offer a compelling discount to our fair value estimate along with a narrow economic moat and a strong long-term growth profile.

The Sarulla contract signings expand Ormat's beachhead in a potentially huge growth market, Indonesia. In addition, the firm has won a string of projects in New Zealand and Honduras and is exploring in Chile. Even with delays, we project development will drive 11% annual revenue growth and 13% annual EBITDA growth over 2012-17.

Ormat Technologies will have a booth at the GEA Expo run in conjunction with the GRC Annual Meeting, Sept. 29-Oct. 2 at the MGM Grand, Las Vegas, Nevada.

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