Tate Sullivan, an analyst from Maxim Group, maintained the Buy rating on Badger Meter. The associated price target remains the same with $243.00.
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Tate Sullivan’s rating is based on Badger Meter’s strong financial performance and strategic positioning. The company reported a notable increase in organic revenue growth, driven by its acquisition of SmartCover and a rise in demand for its high-margin real-time water infrastructure technology. This has led to an improvement in gross profit margins, which were raised to a range of 39%–42%, reflecting the company’s ability to sell higher-margin products.
Additionally, Badger Meter’s consistent free cash flow generation positions it well for potential future acquisitions and dividend increases, enhancing shareholder value. Despite a reduction in revenue estimates due to longer customer installation schedules, the company’s robust earnings per share and strategic focus on high-growth areas like software-as-a-service (SaaS) contribute to the Buy rating. Trading at a reasonable multiple of future earnings, Sullivan maintains a price target of $243, reflecting confidence in Badger Meter’s long-term growth prospects.
In another report released yesterday, Stifel Nicolaus also upgraded the stock to a Buy with a $215.00 price target.
BMI’s price has also changed moderately for the past six months – from $208.530 to $182.600, which is a -12.43% drop .