Badger Meter (BMI) PT Raised to $52 at Stifel After Seq Growth Returns - Stifel

October 18, 2019 7:42 AM EDT
Get Alerts BMI Hot Sheet
Price: $101.03 +1.03%

Rating Summary:
    2 Buy, 10 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Stifel analyst Nathan Jones raised the price target on Badger Meter (NYSE: BMI) to $52.00 (from $49.00) after the company's 3Q19 report was somewhat better than expected after allowing for the 1x warranty charge. After a rough 2Q19 revenue quarter in the municipal business (-9.6%) where the company attributed the drop to an "innovation pause" around new product releases, particularly the new ORION LTE-M radio, growth returned to the domestic business with 2% growth.

The analyst stated "Expense control has been solid with a slight drop expected in SG&A for the full year in dollar terms and a slight uptick as a percentage of sales. We think this is pretty strong execution given the unexpected drop in revenue in 1H19. We expect SG&A to increase at ~2% per year due to inflation and for the company to see operating leverage on the SG&A line at levels above 2% growth. In our model with gross margins flat and 4% long term organic growth (which is below management expectations) we see 40-50bps of margin expansion driven by SG&A leverage over the long term". No change to the Hold rating.



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

You May Also Be Interested In





Related Categories

Analyst PT Change

Related Entities

Stifel