Analyst Yuval Ben-Zeev sees growth potential and low risk in the geothermal power plant company.
Clal Finance Batucha has upgraded its recommendation for geothermal power plant company Ormat Industries (TASE: ORMT) from "Market Perform" to "Outperform", with a target price of NIS 21.50. On the Tel Aviv Stock Exchange this morning, Ormat shares are up 0.81%, at NIS 18.70.
According to Clal Finance Batucha's valuation, Ormat is currently being traded at a 24% discount to its net asset value. Analyst Yuval Ben-Zeev says that the company presents low risk, thanks to an orders backlog worth $3.9 billion for delivery over 22 years, and it has high growth potential.
According to Ben-Zeev, downward pressure on the share because of impending conversion to shares of convertible bonds, which has seen it underperform the Tel Aviv 100 index, is about to end.
Published by Globes [online], Israel business news - www.globes.co.il - on January 23, 2005