JPMorgan initiates Badger Meter stock with Overweight rating on water tech growth

Published 09/09/2025, 08:46
JPMorgan initiates Badger Meter stock with Overweight rating on water tech growth

Investing.com - JPMorgan initiated coverage on Badger Meter (NYSE:BMI) with an Overweight rating and a $230.00 price target on Tuesday. The company, currently valued at $5.4 billion, has demonstrated strong financial health with a "GREAT" rating according to InvestingPro metrics.

The investment bank views the water technology company as an attractive long-term holding for industrial and sustainability-focused investors seeking exposure to multi-decade secular tailwinds, including advanced metering infrastructure (AMI) adoption, water scarcity, water quality concerns, and aging water infrastructure. Supporting this view, BMI boasts impressive fundamentals with a 41% gross margin and has maintained dividend payments for 55 consecutive years, raising them for the past 32 years straight.

JPMorgan expects Badger Meter’s ongoing product mix shift toward AMI, analytics, ultrasonic meters, and water quality testing to provide structural financial benefits over the next decade as utilities increasingly adopt these technologies.

The firm believes Badger Meter is uniquely positioned to grow its BlueEdge product portfolio both organically and through acquisitions, potentially becoming a more comprehensive technology provider for water utilities.

Following a recent pullback in shares after Badger Meter’s second-quarter earnings report, JPMorgan considers current price levels an attractive entry point for investors.

In other recent news, Badger Meter Inc . reported its second-quarter 2025 earnings, which showed a mixed financial performance. The company posted earnings per share (EPS) of $1.17, missing the forecasted $1.23, a shortfall of 4.88%. However, revenue slightly exceeded expectations, coming in at $238.1 million compared to the projected $236.95 million. In addition to its earnings report, Badger Meter announced an 18% increase in its quarterly dividend to $0.40 per share, marking the 33rd consecutive year of dividend hikes. RBC Capital has adjusted its price target for Badger Meter to $264.00 from $284.00, citing higher-than-expected expenses in the recently acquired SmartCover business. Despite this adjustment, RBC maintained its Outperform rating on the stock. Meanwhile, Stifel reiterated its Hold rating with a $224.00 price target, noting the higher-than-expected expenses as a factor in the earnings miss. These developments highlight the ongoing financial adjustments and strategic moves within Badger Meter.

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