Berenberg Bank Lifts Badger Meter Price Target to $105 from $95 following Investor Meeting
Analysts at Berenberg Bank increased their price target on Badger Meter, Inc. (NYSE:BMI) to $105 from $95 following their hosted investor meeting last week, from which they walked away more optimistic about the secular tailwinds driving growth in the water infrastructure industry over the next few years. The analysts believe a perfect storm is emerging as water companies are poised to benefit from infrastructure stimulus and more stringent compliance that specifically targets water, corporate ESG initiatives strongly influencing customer spending behavior, and accelerating adoption of smart water and digital IoT solutions, prompted by the COVID-19 pandemic.
According to the brokerage the company is an underappreciated promising SaaS story as the company aspires to grow its SaaS portfolio to around 10% of sales (from 5% today) over the medium term.
With an appetite for digital solutions increasing, the analysts believe the company can grow organic sales at approximately 6% per year.
| Symbol | Price | %chg |
|---|---|---|
| 6861.T | 54690 | -1.63 |
| 006400.KS | 190800 | 3.98 |
| 006405.KS | 107200 | 2.33 |
| 009155.KS | 54000 | 0 |
Badger Meter, Inc. (NYSE:BMI) Quarterly Earnings Preview
- Earnings per Share (EPS) is expected to be $1.01, marking a 20.2% increase year-over-year.
- Revenue projections stand at approximately $202.7 million, indicating a 9% growth from the previous year.
- BMI's financial metrics show a price-to-earnings (P/E) ratio of 51.48, highlighting investor confidence.
Badger Meter, Inc. (NYSE:BMI) is renowned for its cutting-edge smart water solutions, focusing on flow measurement and control products for water utilities and industrial markets. It competes with companies like Itron and Xylem in the water management technology sector.
On January 31, 2025, BMI is poised to announce its quarterly earnings, with Wall Street forecasting an EPS of $1.01, in line with the Zacks Consensus Estimate. This represents a significant 20.2% increase year-over-year. Analysts have shown optimism by adjusting their earnings estimates upwards by 1 cent over the past 60 days.
Revenue expectations for BMI are set at around $202.7 million, slightly surpassing the Zacks Consensus Estimate of $198.9 million. This would denote a 9% growth compared to the prior year. Notably, BMI has exceeded earnings expectations in the last four quarters, with an average surprise of 10.4%, as per Zacks.
The anticipated performance boost is attributed to robust demand for BMI's smart water solutions, including its mechanical and E-Series Ultrasonic meters, ORION Cellular endpoints, and BEACON Software-as-a-Service offerings. However, the holiday season's reduced operating days could present a hurdle.
Examining BMI's financial health, the company's P/E ratio stands at 51.48, indicating a strong investor willingness to invest in its earnings. The price-to-sales ratio is 7.63, with an enterprise value to sales ratio of 7.31. A notably low debt-to-equity ratio of 0.0012 suggests the company has minimal debt relative to its equity.
Badger Meter (NYSE:BMI) Shows Signs of Stabilization and Growth Potential
- Scott Graham from Seaport Global sets a price target of $250 for BMI, indicating an 18.22% potential upside.
- The formation of a hammer chart pattern suggests potential support for BMI, indicating a possible rebound.
- Wall Street analysts revise earnings estimates upwards, reflecting a positive outlook and potential for near-term recovery.
Badger Meter (NYSE:BMI) is a company that specializes in manufacturing flow measurement and control products. These products are essential for water utilities, municipalities, and industrial customers. The company competes with other firms in the water technology sector, such as Xylem and IDEX Corporation. Recently, Scott Graham from Seaport Global set a price target of $250 for BMI, suggesting a potential upside of 18.22% from its trading price of $211.47 on October 18, 2024.
BMI has shown signs of stabilizing after a period of decline, as highlighted by the formation of a hammer chart pattern. This technical indicator suggests potential support for the stock, indicating that the stock might have reached its bottom and could be poised for a rebound. The stock is currently priced at $207.46, reflecting a slight increase of 0.73% or $1.51, with daily fluctuations between $206.13 and $212.22.
Wall Street analysts have been revising their earnings estimates for Badger Meter upwards, indicating a positive outlook and potential for a near-term recovery. This consensus among analysts suggests confidence in the company's future performance. Over the past year, BMI has experienced a high of $230.76 and a low of $134.06, showcasing its volatility in the market.
Badger Meter has a market capitalization of approximately $6.1 billion, which reflects the total market value of its outstanding shares. The trading volume of 61,912 shares indicates the level of investor interest and activity in the stock. As the company continues to stabilize and analysts maintain a positive outlook, investors may find BMI an attractive option for potential growth.
Thoughts on Badger Meter Following Q3 Results
Badger Meter, Inc. (NYSE:BMI) reported its Q3 results last week, which were mostly in line with the Street estimates, despite investor concerns over the impact of industry supply chain challenges on margins.
The Water Utility segment faced very tough year-over-year comps and supply challenges, although organic sales still grew around 2%. Strong orders also continued into Q3, and the company exited the quarter with another record backlog. The company’s manufacturing output continues to be limited by supplier shortages of certain electronics, while logistics remain a challenge. While the company managed to offset these pressures with pricing actions and a more favorable mix of products, cost pressures are expected to linger well into 2022.
