In a report released today, Amit Dayal from H.C. Wainwright maintained a Buy rating on Orion Energy Systems (OESX), with a price target of $1.75. The company’s shares opened today at $1.10.
Dayal said:
“We expect Orion to generate revenues of $20.4M during F4Q19 and expect gross margin of 22.7%. We expect topline revenues to increase from $63.7M in FY2025, growing at a six-year CAGR of 17.4%. During the same period, we expect operating expenses to grow at a six-year CAGR of 7.5% from $21.1M in in FY2025. We arrive at our target price of $1.75 per share based on a DCF analysis which uses a discount rate of approximately 19.1% derived from the company’s weighted average cost of capital (WACC).”
According to TipRanks.com, Dayal is ranked 0 out of 5 stars with an average return of -6.9% and a 43.1% success rate. Dayal covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Capstone Turbine Corp, and UQM Technologies Inc.
Currently, the analyst consensus on Orion Energy Systems is a Moderate Buy with an average price target of $1.75, a 59.1% upside from current levels. In a report released today, Roth Capital also upgraded the stock to Buy.
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The company has a one-year high of $1.43 and a one-year low of $0.53. Currently, Orion Energy Systems has an average volume of 110.5K.
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Orion Energy Systems, Inc. engages in the design, development, and trade of lighting systems and retrofit lighting solutions. It operates through the following segments: U.S. Markets; Engineered Systems and Distribution Services. The U.S. Markets segment produces and sells commercial lighting and energy management systems to the wholesale contractors.
