Stephens raises Itron stock price target to $130 on record margins

Published 04/08/2025, 17:14
Stephens raises Itron stock price target to $130 on record margins

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.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.