Stifel maintains hold rating on Badger Meter stock with $230 target

Published 16/06/2025, 13:18
Stifel maintains hold rating on Badger Meter stock with $230 target

Stifel reiterated its Hold rating on Badger Meter (NYSE:BMI) with a price target of $230.00, following investor meetings in Denver last week. The stock, which has delivered a robust 31% return over the past year, currently trades near its 52-week high of $256.08.

The investment firm’s meetings included Badger Meter CEO Ken Bockhorst, CFO Bob Wrocklage, and Senior Director of Investor Relations Barbara Noverini, according to Stifel’s research note.

Stifel expressed confidence in Badger Meter’s continued strong growth prospects and potential for margin expansion based on insights gained during these discussions.

Despite the positive outlook on the company’s operational performance, Stifel views Badger Meter shares as "fully valued at this level," explaining the maintained Hold rating.

The $230 price target remains unchanged from Stifel’s previous valuation of the water metering and flow measurement solutions provider.

In other recent news, Badger Meter reported impressive first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.30, compared to the forecasted $1.07. The company’s revenue for the quarter was $222.2 million, slightly above the anticipated $220.92 million, driven by a 13% year-over-year increase. RBC Capital Markets responded to these results by raising the price target for Badger Meter to $252, maintaining an Outperform rating due to the company’s strong demand and favorable product mix. Stifel also adjusted its outlook, increasing the price target to $230 while maintaining a Hold rating, reflecting confidence in the company’s growth prospects despite viewing the stock as fully valued.

Additionally, Raymond (NSE:RYMD) James initiated coverage on Badger Meter with a Market Perform rating, expressing concerns about the current valuation reflecting an optimistic scenario for the industry. The analysts highlighted potential risks such as the expected reduction in U.S. federal stimulus to water utilities after 2026. Badger Meter’s first-quarter performance included a significant 25% increase in software revenue, bolstered by the acquisition of SmartCover. The company’s gross margin improved by 360 basis points, attributed to a favorable customer and product mix, with smaller utilities and software products contributing significantly. The company also confirmed its manufacturing facility in Mexico is exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA), providing cost certainty in the face of potential tariff impacts.

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