Needham & Company Downgrades Itron (ITRI) to Hold

February 14, 2013 8:19 AM EST Send to a Friend
Get Alerts ITRI Hot Sheet
Price: $40.73 +0.57%

Rating Summary:
    8 Buy, 15 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 14 | New: 51
Trade ITRI Now!
Join SI Premium – FREE
Needham & Company downgraded Itron (NASDAQ: ITRI) from Buy to Hold following Q4 results and 2013 guidance.

The firm comments, "Overall, we view ITRI's 4Q results as communicating two stories to investors. The first is that the company is still a market leader with generally good
organic/legacy revenue generation and a host of solid longer-term growth opportunities. The second is a story of costs pertaining to ITRI's investment strategy, execution, and the nature of the customers it pursues. On the cost front, we are more concerned about the potential for dampened income opportunities (as revenue comes back to the model) in "out" years than the impact to 2013. We continue to believe in the ITRI story and its strong market position. But, until we see more meaningful catalysts or better clarity that dampening "cost creep" can be avoided when a return to growth materializes in
2014 and beyond, we view shares as fairly valued as the stock has approached our prior $50 target, and we deem a Hold rating as appropriate."

The firm cut FY13 EPS from $3.74 to $3.08 and sees FY14 EPS of $3.63.

For an analyst ratings summary and ratings history on Itron click here. For more ratings news on Itron click here.

Shares of Itron closed at $47.85 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst EPS Change, Analyst EPS View, Downgrades

Related Entities

Needham & Company

Add Your Comment