Analyst Tate Sullivan from Maxim Group reiterated a Buy rating on Badger Meter (BMI – Research Report) and increased the price target to $207.00 from $190.00.
Tate Sullivan has given his Buy rating due to a combination of factors including the impressive financial performance of Badger Meter in the first quarter of 2024, where both revenue and earnings per share (EPS) exceeded expectations. The company’s revenue saw a significant increase, and the growth in EPS was particularly notable at 50% above projections. This performance was driven by higher water meter volumes and a controlled growth in selling, engineering, and administration expenses. Moreover, Badger Meter’s consistent guidance for gross profit margins and the anticipation of revenue growth in the municipal water sector further strengthen the positive outlook.
Furthermore, Sullivan’s confidence in Badger Meter is bolstered by the company’s solid financial position, characterized by the absence of debt and the projection of an 18.5% quarterly dividend increase. The expectation that the company will continue to generate free cash flow to support operations and dividends adds to the optimism. Additionally, the potential for Badger Meter to establish a new market in global water quality monitoring is seen as an opportunity for further growth. All these factors contribute to Sullivan’s raised price target and reiteration of the Buy rating, underlining a bullish perspective on Badger Meter’s stock.
Sullivan covers the Industrials sector, focusing on stocks such as Exro Technologies, EuroDry, and Seanergy Maritime. According to TipRanks, Sullivan has an average return of 11.5% and a 46.20% success rate on recommended stocks.
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Badger Meter (BMI) Company Description:
Badger Meter, Inc. engages in the provision of flow measurement, control products, and communications solutions that serves water utilities, municipalities, and commercial and industrial customers worldwide. Its products are classified into two categories: Municipal Water and Flow Instrumentation. Municipal water products comprises of water meters and related technologies to municipal water utilities. Flow Instrumentation products includes meters and valves sold worldwide to various industries for water and other fluids. The company was founded in 1905 and is headquartered in Milwaukee, WI.
