
Badger Meter (BMI) Stock Forecast & Price Target
Badger Meter (BMI) Analyst Ratings
Bulls say
Badger Meter's outlook is bolstered by an increase in its normalized gross margin range from 38%-40% to 39%-42%, driven by a shift towards higher-margin products. The company's organic revenues experienced approximately 7.5% growth, supplemented by SmartCover, which contributed significantly to topline performance and maintained a strong growth trajectory. Additionally, continuous gross margin expansion of 50 basis points year-over-year and a 15% increase in SmartCover sales further highlight the company's solid foundation for sustained revenue growth and structural margin improvement.
Bears say
The analysis indicates a negative outlook for Badger Meter's stock due to lower-than-expected revenue growth stemming from the conclusion of several Advanced Metering Infrastructure (AMI) turnkey projects, which resulted in base revenue growth falling short of long-term projections. Additionally, a decline in operational days alongside flat year-over-year flow instrumentation sales has raised concerns about a potential slowdown below the company's historical high single-digit organic growth outlook, particularly as financial support from ARPA funds may wane by 2027, leading to anticipated sales headwinds. Furthermore, there are risks associated with potentially overspending on acquisitions within the water technology sector, which could adversely affect earnings per share and valuation relative to peers.
This aggregate rating is based on analysts' research of Badger Meter and is not a guaranteed prediction by Public.com or investment advice.
Badger Meter (BMI) Analyst Forecast & Price Prediction
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