Stifel upgrades Badger Meter stock rating to Buy on AMI cycle strength

Investing.com - Stifel upgraded Badger Meter (NYSE:BMI) from Hold to Buy on Wednesday, while raising its price target to $215.00 from $208.00. The $5.2 billion market cap company, which boasts a GREAT financial health score according to InvestingPro, has demonstrated solid performance with 11.8% revenue growth over the last twelve months.

The research firm cited the continued Automated Meter Infrastructure (AMI) upgrade cycle as a key driver of secular growth for Badger Meter, with additional growth contributions expected from the company’s non-metering businesses.

Stifel believes market concerns regarding declining stimulus funds and cuts to federal funding of water utilities are "overblown," creating negative sentiment that will eventually dissipate.

The firm highlighted several positive factors supporting its upgraded outlook, including Badger Meter’s secular growth prospects, structural margin tailwinds, strong balance sheet, and quality management team.

With expectations now "reasonably reset," Stifel concluded that Badger Meter stock represents a "strong investment opportunity" for investors.

In other recent news, Badger Meter Inc . reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.19, compared to the forecasted $1.14. Additionally, Badger Meter exceeded revenue expectations, posting $236 million against a forecast of $231.85 million. These results indicate strong performance for the company during this period. The earnings announcement was met with positive investor sentiment. Analysts had anticipated slightly lower figures, but the company’s results outperformed these projections. This development highlights Badger Meter’s ability to deliver solid financial outcomes.

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