Ahead of the Bell: Analyst upgrades Ormat Tech

An analyst on Friday upgraded Ormat Technologies Inc., saying there is a strong demand for alternative energy such as its geothermal energy projects.

Ormat recently received approval to supply and build a plant for Nevada Geothermal and purchased geothermal exploratory rights on 35,000 acres in an active volcanic region near Anchorage, Alaska, Piper Jaffray analyst Charles Fishman said.

"The demand for geothermal energy, a lower-priced alternative versus wind, solar and other renewables, remains strong," he wrote in a research note.

Fishman also noted Ormat's stock price has fallen 20 percent in recent weeks which creates an opportunity for investors. He lifted his rating to "Buy" from "Neutral" and maintained a price target of $49.

The analyst also reiterated his earnings-per-share estimate of $1.64 for fiscal 2009.

Based in Reno, Nev., Ormat Technologies develops and operates power plants in the United States, Guatemala, Kenya and Nicaragua.