Baird Remains Bullish on Itron (ITRI) After Mixed Results in 1Q15
Baird maintaine dan Outperform rating on Itron, Inc. (NASDAQ: ITRI) and kept its price target at $45. This comes after ITRI missed EPS following warranty expenses related to its water segment. Despite this setback, ITRI had solid revenue, and continues to expand its 12-month backlog which should result in meaningful growth in 2016. Also, ITRI announced deals with Electrobus and Duquesne.
Baird analyst Ben Kallo comments, "Backlog growth and restructuring progress sets up EPS growth next year. We believe ITRI is positioned for strong EPS growth in 2016 given the company’s 12-month backlog and restructuring program, which remains on track to eliminate $40M in annual costs by YE:2016."
He added, "Brazil and Duquesne P&L wins show increasing breadth of technology. ITRI announced Eletrobras will deploy its OpenWay Riva solution to modernize its electric grid, and Duquesne hired ITRI to run its network operations. We believe both deals help validate ITRI’s technology."
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Shares of Itron closed at $35.70 yesterday.