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Investing.com - RBC Capital has lowered its price target on Badger Meter (NYSE:BMI) to $264.00 from $284.00 while maintaining an Outperform rating on the stock. The company, currently trading at a P/E ratio of 42.2x and generating annual revenue of $852 million, is currently trading above its InvestingPro Fair Value.
The adjustment follows what RBC described as a "modest 2Q25 miss" primarily attributed to higher-than-expected Selling Engineering and Admin expenses in the company’s recently acquired SmartCover business.
Despite the price target reduction, RBC characterized the issues as "accounting nuance" rather than fundamental concerns that would change their overall positive thesis on the company.
The firm highlighted Badger Meter’s strong 5% organic growth during the quarter, which was achieved against what it called "the toughest comp," along with solid longer-term demand trends and continued technology adoption of Advanced Metering Infrastructure (AMI).
RBC also noted that the third quarter of 2025 "could be choppy given AMI deployment timing," but recommended investors buy the stock on its recent pullback, which has seen the shares decline nearly 15% over the past week. InvestingPro analysis reveals multiple insights about BMI’s valuation and growth prospects, with 14 additional ProTips available to subscribers.
In other recent news, Badger Meter reported its second-quarter 2025 earnings, which showed a mixed financial performance. The company posted earnings per share of $1.17, falling short of the forecasted $1.23, representing a 4.88% miss. However, revenue slightly exceeded expectations, coming in at $238.1 million compared to the anticipated $236.95 million. Stifel has maintained its Hold rating on Badger Meter, with a price target of $224.00, following these results. Stifel analyst Nathan Jones noted that the earnings were slightly below consensus estimates due to higher-than-expected expenses. These developments have been closely watched by investors, especially given the subsequent reaction in the market.
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