RBC Capital Adjusts Price Target#
RBC Capital has lowered its price target for Badger Meter (NYSE:BMI) shares from $197 to $169, while still maintaining an Outperform rating. This adjustment comes after the company reported disappointing financial results for the first quarter of fiscal 2026.
Earnings Miss and Project Timing#
The firm pointed to an operating miss in the first quarter, which was influenced by project timing and a slower-than-expected book-and-ship business. Several large Advanced Metering Infrastructure (AMI) projects are nearing completion, but a significant backlog means that shipments are delayed until the second half of fiscal 2026. This situation has created a gap in revenue for the first half of the year.
Market Reaction and Stock Performance#
Following the earnings report, Badger Meter's stock fell 24%, bringing its price down to $115.54, close to its 52-week low of $115.11. In the past week alone, the stock has dropped 28%. Despite this decline, some analysts suggest that the stock may be undervalued, as indicated by the Fair Value analysis from InvestingPro.
Upcoming Analyst Day#
Badger Meter is scheduled to hold its inaugural analyst day on May 21, which may provide further insights into the company’s strategy and future prospects. Investors are keenly awaiting this event to gauge how the company plans to address its recent challenges.