Microvast Holdings announces departure of chief financial officer
On Wednesday, Stifel analysts adjusted their outlook on Badger Meter (NYSE:BMI), a company specializing in flow measurement, control products, and communications solutions. The price target for Badger Meter stock was lowered to $196 from the previous target of $209, while the Hold rating was reaffirmed. Currently trading at $184.63 with a market capitalization of $5.46 billion, InvestingPro analysis indicates the stock is trading above its Fair Value, with multiple valuation metrics showing premium multiples.
The revision in the price target was attributed to expectations of a modest industrial recession in the United States, anticipated to occur in the second half of 2025 and extend into the first half of 2026. This projection is based on current U.S. trade policies that analysts believe could influence the industrial sector negatively. Despite these concerns, InvestingPro data shows the company maintains robust financials with a 17.48% revenue growth and an impressive Financial Health Score of "GREAT."
Despite the anticipated industrial downturn, Stifel’s analysts expressed a belief that Badger Meter would navigate through the challenges relatively unscathed. The company’s focus on water and wastewater markets, which are less likely to be impacted by industrial recessions, coupled with its largely domestic market exposure, are seen as stabilizing factors. Furthermore, the ongoing high demand for Automatic Meter Infrastructure (AMI) conversion is expected to sustain the company’s demand levels. The company’s financial strength is evident in its strong balance sheet, with more cash than debt and a current ratio of 4.57. Notably, Badger Meter has maintained dividend payments for 55 consecutive years, demonstrating long-term stability.
Additionally, the analysts noted that Badger Meter’s flexible manufacturing capabilities should enable the company to mitigate the adverse effects of tariffs. The analysts anticipate that the company’s pricing strategies will further help in addressing any cost increases resulting from tariffs.
In summary, while Stifel has reduced the price target for Badger Meter shares, the firm maintains a Hold rating, signaling a neutral stance on the stock’s near-term prospects. The analysts’ comments reflect a cautious yet measured outlook for Badger Meter amidst a potentially challenging economic environment.
In other recent news, Badger Meter has made headlines with its announcement of acquiring SmartCover for $185 million, marking its largest acquisition to date. This move is seen as a significant milestone for the company, which is anticipated to bolster its organic growth starting in 2026. Although the acquisition is expected to be dilutive to Badger Meter’s earnings per share in 2025, analysts predict it will have a neutral impact by 2026. The acquisition is projected to contribute positively to the company’s EBITDA margins by 2027 and 2028. Stifel analysts have responded to this development by increasing the price target for Badger Meter shares to $209, while maintaining a Hold rating. They noted that the company’s base business continues to demonstrate strong growth. Despite the initial earnings impact, the long-term outlook for Badger Meter is seen as favorable, with the SmartCover acquisition expected to enhance growth and profitability in the future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.