Stifel raises Badger Meter stock price target to $233 on AMI demand

Published 21/07/2025, 12:48
Stifel raises Badger Meter stock price target to $233 on AMI demand

Investing.com - Stifel has raised its price target on Badger Meter (NYSE:BMI) to $233.00 from $230.00 while maintaining a Hold rating on the stock. The company’s shares, currently trading at $244.37, are near their 52-week high of $256.08, with InvestingPro data showing the stock may be overvalued at current levels.

The research firm cited strong demand for Advanced Metering Infrastructure (AMI) solutions as a key factor supporting continued revenue growth for the water metering company. This growth trajectory is evident in Badger Meter’s impressive 15.08% revenue growth over the last twelve months.

Stifel noted that Badger Meter has reduced its exposure to brass components in its cost of goods sold over recent years, though the company does not specifically quantify this exposure.

The firm highlighted that Badger Meter has demonstrated a strong track record of managing cost increases through customer pricing, and expects the company will pass through higher costs related to recent copper tariffs, which have driven copper prices significantly higher.

According to Stifel, the new tariffs may keep Badger Meter’s gross margin guidance in the 38%-40% range in the short term as cost uncertainty persists, while organic growth will likely remain the focus for supporting the premium multiple the stock has generated in recent years. The company currently maintains a robust gross margin of 40.76% and boasts a 32-year streak of dividend increases. For deeper insights into Badger Meter’s valuation and growth prospects, check out the comprehensive analysis available on InvestingPro.

In other recent news, Badger Meter reported a strong first-quarter performance in 2025, which exceeded expectations. The company saw a 25% increase in operating earnings compared to estimates, with earnings per share rising by 31% year-over-year. The robust demand for water metering products contributed to a 12% rise in organic demand, surpassing the projected 9% increase. Following these results, RBC Capital Markets raised its price target for Badger Meter to $252, maintaining an Outperform rating. Meanwhile, Stifel increased its price target to $230 but kept a Hold rating, expressing that the stock is fully valued. Raymond (NSE:RYMD) James initiated coverage with a Market Perform rating, highlighting potential risks due to the current market valuation. In other company news, Malibu Boats (NASDAQ:MBUU) appointed Melanie Cook, former COO of GE Appliances, to its Board of Directors. Cook’s appointment is seen as a strategic move ahead of John Stokely’s planned retirement in October 2025.

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