Itron (ITRI) has received a new Buy rating, initiated by Roth MKM analyst, Chip Moore.
Chip Moore has given his Buy rating to Itron’s stock based on a positive outlook on the company’s future, highlighting several reasons for his optimistic stance. First, he underlines the strong backlog visibility for the upcoming years, which should provide a stable flow of revenue. He also anticipates significant market tailwinds from infrastructure investments that are expected to begin around 2025. Moore appreciates Itron’s position as a more countercyclical investment, considering the current uncertain macroeconomic environment, and foresees an improvement in investor sentiment as supply chain issues recede and the benefits of Itron’s transition to an asset-light business model become more apparent. He predicts a more substantial margin increase in 2025 as a result of the timing of project deployments.
Furthermore, Itron’s extensive range of hardware and software solutions, along with its strong customer base, positions it well to capitalize on future opportunities related to grid modernization and smart city initiatives. Moore points out Itron’s strategic shift towards an asset-light model, which he believes will become more evident in terms of financial performance as the company gains volume leverage. He also notes Itron’s long-standing relationships with its customers, which he considers an undervalued asset in risk-averse and heavily regulated industries. Lastly, Moore sees potential for Itron to engage in strategic mergers and acquisitions, bolstered by its healthy cash generation and low net leverage, which could contribute to further growth and value creation.
According to TipRanks, Moore is a 5-star analyst with an average return of 25.0% and a 57.24% success rate. Moore covers the Industrials sector, focusing on stocks such as Hyster-Yale Materials Handling, Eos Energy Enterprises, and Generac Holdings.
In another report released on November 22, TD Cowen also maintained a Buy rating on the stock with a $95.00 price target.
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Itron (ITRI) Company Description:
Itron, Inc. is a technology and services company, which engages in the provision of solutions that measure, manage, and analyze energy and water use. It operates through the following segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment includes hardware products used for measurement, control, or sensing that do not have communications capability embedded for use with its broader Itron systems. The Networked Solutions segment offers a combination of communicating devices, network infrastructure, and associated application software designed and sold as a complete solution for acquiring and transporting robust application-specific data. The Outcomes segment consist of the firm’s value-added, enhanced software and services operating segment in which it manage, organize, analyze, and interpret data to improve decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. The company was founded in 1977 and is headquartered in Liberty Lake, WA.
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