Stifel lifts Badger Meter stock target to $209, maintains Hold

Published 03/02/2025, 14:12
Stifel lifts Badger Meter stock target to $209, maintains Hold

On Monday, Stifel analysts increased the price target on Badger Meter shares, traded on the New York Stock Exchange under the ticker (NYSE:BMI), to $209 from the previous target of $208, while keeping a Hold rating on the stock. The revision follows Badger Meter’s announcement of its largest acquisition to date, the purchase of SmartCover for $185 million. The company, currently valued at $6.29 billion, has demonstrated strong financial performance with 17.48% revenue growth in the last twelve months.

Analysts at Stifel noted the base business of Badger Meter continues to show robust growth. They highlighted the SmartCover acquisition as a significant development, marking a milestone in the company’s history. Despite the acquisition being dilutive to Badger Meter’s earnings per share (EPS) in 2025, the analysts expect the impact to be neutral by 2026. According to InvestingPro data, the company has maintained a strong dividend track record, raising dividends for 32 consecutive years, though it currently trades above its Fair Value.

The acquisition of SmartCover, a company specializing in smart water monitoring solutions, is expected to start contributing positively to Badger Meter’s organic growth starting in 2026. Moreover, by the years 2027 and 2028, it is anticipated to begin adding to the company’s EBITDA margins.

Stifel’s analysis suggests that while there is an immediate dilutive effect on Badger Meter’s earnings due to the acquisition, the long-term prospects appear favorable. The analysts project that the deal with SmartCover will enhance the company’s growth trajectory and profitability over the coming years.

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

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