On Tuesday, Canaccord Genuity adjusted its outlook on Itron (NASDAQ:ITRI), a technology company specializing in energy and water resource management. The firm increased the price target to $130.00, up from the previous $125.00, while reiterating a Buy rating on the stock. This aligns with broader market sentiment, as InvestingPro data shows eight analysts have recently revised their earnings estimates upward, with the stock delivering an impressive 49.6% return year-to-date.
Canaccord's decision follows Itron's recent booking announcement, which successfully secured a substantial portion of the $1 billion in pending awards, noted as particularly challenging to obtain. This milestone is seen as a significant positive development for Itron's investors, reinforcing confidence in the company's ability to meet its 2027 financial targets.
These goals include achieving $2.7 billion in revenue and a gross margin of 37%, with even higher margins expected in specific sectors—39% in Networks and 44% in Outcomes. The company's strong financial health is evident in its current metrics, with InvestingPro showing a healthy current ratio of 3.36 and revenue growth of 16.5% over the last twelve months.
The firm's optimism is also reflected in the introduction of new estimates for 2026, projecting Itron to reach $2.582 billion in revenue with a gross margin of 36%, alongside $378.4 million in adjusted EBITDA. The revised price target of $130 is based on applying a 16.4x multiple to these 2026 adjusted EBITDA projections.
The analyst's statement underscores the company's adherence to the financial guidance presented during the 2024 investor day, indicating a steady path toward the outlined fiscal objectives. This trajectory offers a clear signal to investors about Itron's potential growth and profitability in the coming years.
Itron's performance and the recent positive booking announcement play a crucial role in the company's strategy to meet the ambitious 2027 revenue and margin goals, providing a foundation for continued investor confidence in the company's direction and management.
For deeper insights into Itron's valuation and growth prospects, InvestingPro subscribers can access additional analysis tools and ProTips, including comprehensive financial health scores and detailed growth metrics in the Pro Research Report.
In other recent news, Itron, a technology company, has been maintaining a strong financial performance, as highlighted in its recent third-quarter earnings call. The company reported a 10% increase in revenue year-over-year, reaching $615 million, with an adjusted EBITDA of $89 million and non-GAAP earnings per share of $1.84. Itron's backlog has grown to $4 billion, with bookings of $487 million. The company also projects its full-year revenue to be between $2.428 billion and $2.438 billion, marking a 12% increase from the previous year.
In addition to these strong financial results, Baird has reaffirmed its positive stance on Itron, maintaining an Outperform rating. The firm's confidence in Itron is rooted in several potential catalysts that could further enhance the company's long-term financial targets, including an uptick in power demand forecasts, a recent acquisition within the Outcomes segment, and a quicker-than-anticipated rollout of government funding for infrastructure projects.
In line with its strategic growth plans, Itron is actively pursuing mergers and acquisitions opportunities to strengthen its grid edge intelligence platform. Despite potential challenges in projecting growth for 2025, Itron remains optimistic about its market demand and operational efficiency.
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