Itron upgraded to Buy from Hold at Canaccord

Canaccord upgraded Itron to Buy from Hold with a price target of $105, up from $68, following the Q4 report. The analyst says Itron’s backlog improved by 4.7% to $4.5B, overwhelmingly driven by growth in its Networked Solutions and Outcomes segment. The company is also continuing its restructuring projects to close two factories and expects the combined effects of the plant closures and burning through the remaining low-margin backlog to equate to a higher gross margin profile in 2025, the analyst tells investors in a research note. In addition, the firm notes the supply chain is likely to be less impactful to shipment activity in 2024, enabling greater delivery volumes.