Guggenheim raises Itron stock price target to $155 on improved confidence

Investing.com - Guggenheim raised its price target on Itron (NASDAQ:ITRI) to $155.00 from $133.00 on Monday, while maintaining a Buy rating on the smart grid solutions provider. The stock, currently trading at $134.54 and near its 52-week high of $136.24, has earned a "GREAT" financial health score according to InvestingPro analysis.

The research firm cited improved confidence in Itron’s ability to meet its 2027 targets, particularly regarding margins, following industry checks and conversations with the company. With six analysts recently revising earnings estimates upward and the company maintaining strong profitability metrics, including a 34.8% gross margin, the outlook appears promising. Discover more valuable insights with InvestingPro, which offers 13 additional investment tips for Itron.

Guggenheim’s 2025 and 2026 estimates remain unchanged, but it initiated a 2027 estimate toward the higher end of the target range Itron established at its 2024 analyst meeting.

The new $155 target price is based on a 2026 EBITDA multiple of approximately 18x, up from about 16x previously, supported by valuation movements among comparable firms and confidence in the 2027 estimates.

Guggenheim noted that Itron’s sustainable revenue growth rate is estimated at 6%-7%, higher than the 3.9% 2024-2027 CAGR calculation, which it considers artificially low due to 2024 revenue being elevated by revenue that slipped from 2023.

In other recent news, Itron Inc. reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.52, which surpassed analyst expectations of $1.32. However, the company’s revenue fell short of forecasts, coming in at $607 million compared to the anticipated $614.49 million. In a strategic move, Itron has doubled its authorized shares from 75 million to 150 million, providing more flexibility for future corporate needs. Additionally, Itron has partnered with 4Liberty to enhance utility solutions, leveraging 4Liberty’s expertise in program management to maximize the benefits of Itron’s technology. Analyst firm TD Cowen raised Itron’s price target from $139 to $145, citing confidence in a new grid modernization cycle in North America. Furthermore, Itron has signed a contract with Hellenic Electricity Distribution Network Operator S.A. to modernize Greece’s electric grid with advanced data management systems. These developments reflect Itron’s ongoing efforts to strengthen its market position and expand its technological capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.