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Investing.com - RBC Capital has lowered its price target on Badger Meter (NYSE:BMI) to $229.00 from $264.00 while maintaining an Outperform rating on the stock. Currently trading at $177.35, with a market capitalization of $5.23 billion, InvestingPro analysis suggests the stock is slightly overvalued at current levels.
The adjustment follows Badger Meter’s third-quarter 2025 results, which RBC described as "modestly better-than-expected," with revenue performance largely matching expectations—down quarter-over-quarter due to AMI deployment timing but up year-over-year. The company has demonstrated solid growth, with revenue increasing 11.82% over the last twelve months.
RBC highlighted several positive aspects of the quarterly report, including 8% organic growth, approximately 6% sequential growth at SmartCover, core incrementals of about 26%, and free cash flow conversion of 136%.
The company also increased its gross margin target to a range of 39%-42%, which RBC viewed favorably despite Tuesday’s share price reversal that saw BMI give back a 4% gain to end down approximately 5%.
RBC attributed the stock’s decline to elevated short-interest and positioning rather than concerning results, stating that current price levels represent "an attractive entry point" for investors.
In other recent news, Badger Meter Inc . reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share of $1.19, exceeding the projected $1.14. Additionally, Badger Meter reported revenue of $236 million, which was above the forecasted $231.85 million. These results highlight the company’s strong financial performance in the recent quarter. In a related development, Stifel upgraded Badger Meter’s stock rating from Hold to Buy, citing the strength of the Automated Meter Infrastructure upgrade cycle as a key growth driver. Stifel also raised its price target for the company to $215.00 from $208.00. The research firm noted additional growth contributions from Badger Meter’s non-metering businesses. These recent developments reflect positive momentum for Badger Meter in the market.
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