Badger Meter price target raised to $230 from $200 at Stifel

Stifel raised its price target on Badger Meter (NYSE:BMI) to $230 from $200 on Monday, while maintaining a Hold rating on the water metering technology company’s stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 53.2x, suggesting a premium valuation relative to earnings.

The research firm’s decision follows meetings with Badger Meter’s leadership team, including CEO Ken Bockhorst, CFO Bob Wrocklage, and Senior Director of Investor Relations Barbara Noverini, which took place in Denver last week.

Stifel expressed confidence in Badger Meter’s continued strong growth prospects and potential for margin expansion based on insights gained during these executive meetings.

Despite the higher price target reflecting improved outlook for the company’s performance, Stifel maintained its Hold rating, indicating it views the stock as "fully valued at this level."

Badger Meter, which specializes in flow measurement, control products, and communications solutions, has seen its shares trade near all-time highs in recent months as water infrastructure investments have increased across municipal and industrial markets.

In other recent news, Badger Meter reported impressive first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.30, a significant increase from the forecasted $1.07. The company’s revenue reached $222.2 million, slightly above the anticipated $220.92 million, driven by a 13% year-over-year sales growth. This strong performance has led RBC Capital Markets to raise its price target for Badger Meter shares to $252, maintaining an Outperform rating. Meanwhile, Stifel also adjusted its outlook, increasing the price target to $200 while retaining a Hold rating, reflecting the company’s resilience amid economic pressures.

Additionally, Badger Meter’s acquisition of SmartCover contributed to a 25% increase in software revenue, further bolstering its financial results. The company’s gross margin expanded by 360 basis points, attributed to a favorable product mix and effective tariff management strategies. Despite these positive developments, Raymond (NSE:RYMD) James analysts initiated coverage with a Market Perform rating, expressing concerns about the company’s current valuation and potential risks due to expected reductions in U.S. federal stimulus to water utilities after 2026. Investors continue to monitor Badger Meter’s strategic responses to tariff impacts and demand for its metering solutions in the evolving market landscape.

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