BofA update shows where active managers are putting money
Investing.com - Stephens raised its price target on Itron (NASDAQ:ITRI) to $130.00 from $110.00 on Monday, while maintaining an Equal Weight rating on the smart grid solutions provider. The company, currently valued at $5.7 billion, is trading near InvestingPro’s Fair Value estimate, with analysts’ targets ranging from $129 to $155.
The price target increase follows Itron’s second-quarter 2025 earnings report, which featured record margins despite investor concerns about reduced sales guidance that led to a share price retreat.
Stephens noted that while sales guidance was lowered, profitability remained a positive factor, prompting the firm to improve its full-year adjusted EBITDA outlook for the company.
Itron management indicated during its earnings call that it expects sales growth to resume in 2026, despite current elongated project cycles resulting from customer capital budget constraints.
The company reaffirmed expectations for a book-to-bill ratio above 1.0x for the full year 2025, supported by stronger second-half performance following the 0.75x ratio reported in the second quarter.
In other recent news, Itron reported its second-quarter 2025 earnings, showcasing an earnings per share (EPS) of $1.62, surpassing analyst expectations of $1.32. However, the company’s revenue slightly missed projections, coming in at $607 million compared to the anticipated $609 million. Despite the earnings beat, the market reacted negatively. JPMorgan responded by raising its price target for Itron to $145 from $128 and upgraded the company to Overweight from Neutral. The decision followed Itron’s report of strong gross margins, EBITDA, and earnings per share, even as revenue aligned with forecasts. Notably, the company’s bookings grew by 2% year-over-year, maintaining a book-to-bill ratio of 0.75x, consistent with the previous year. These developments highlight the mixed response from analysts and investors to Itron’s recent performance.
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