Microvast Holdings announces departure of chief financial officer
On Monday, Raymond (NSE:RYMD) James analysts initiated coverage on Badger Meter (NYSE:BMI) stock with a Market Perform rating. The analysts expressed concerns regarding the current valuation of the company, which trades at a P/E ratio of 55.14 and near its 52-week high. According to InvestingPro data, technical indicators suggest the stock is in overbought territory, supporting the analysts’ cautious stance.
The analysts noted their admiration for Badger Meter’s business model and leadership, reflected in the company’s impressive 15% revenue growth and strong financial health metrics. However, they highlighted potential risks associated with the current market environment. They pointed out that the stock’s current valuation might be at its peak, trading at elevated multiples across earnings, EBITDA, and revenue metrics.
The report also mentioned a potential significant upside to the company’s numbers in the near term. Despite this, the analysts were cautious about recommending the shares, given the current risk-reward balance.
A key consideration in their analysis was the expected reduction in U.S. federal stimulus to water utilities after 2026. This reduction could pose a significant risk to industry-wide demand, according to the analysts.
Overall, the Raymond James analysts concluded that while Badger Meter has strong business fundamentals, the current market conditions do not present an asymmetrically attractive risk-reward scenario for investors. For a comprehensive analysis of Badger Meter’s valuation and growth prospects, InvestingPro subscribers can access the detailed Pro Research Report, which includes over 15 additional key insights and metrics.
In other recent news, Badger Meter reported first-quarter 2025 earnings that exceeded analysts’ expectations. The company’s earnings per share (EPS) reached $1.30, surpassing the forecasted $1.07, and revenue stood at $222.2 million, slightly above the anticipated $220.92 million. This strong performance was attributed to a 13% year-over-year increase in revenue, with utility water product line sales rising by 16%. Additionally, Badger Meter completed the acquisition of SmartCover, which contributed to a 25% increase in software revenue.
Analysts have responded positively to these developments. RBC Capital Markets raised the price target for Badger Meter shares to $252, maintaining an Outperform rating, citing the company’s strong demand for its metering products. Stifel also adjusted its outlook, increasing the price target to $200 while maintaining a Hold rating, highlighting the company’s resilience against economic pressures.
Moreover, Badger Meter’s gross margin expanded by 360 basis points, thanks to a favorable mix of customers and products. The company’s manufacturing facility in Mexico remains exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA), providing cost certainty. As the company navigates potential tariff impacts and input cost pressures, investors continue to monitor its strategic decisions and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.