RBC Capital analyst Jeffrey Reive reiterated an Outperform rating and $169.00 price target on Badger Meter (NYSE: BMI).

The analyst comments "Outperform-rated Badger Meter is hosting its inaugural investor meeting in NYC this morning, May-21. Unsurprisingly, Badger reiterated its 5-year look/through the cycle targets to 6%-8% organic growth (unchanged vs. HSD% previously), 39%-42% gross margins (unchanged) and 100% FCF conversion (unchanged), while issuing as-expected 25%-30% EBITDA incrementals and 10%-15% EPS growth. A quick page flip of the slide deck shows how Badger has multiple drivers of its topline target, including ASP lift from meter conversion, ongoing cellular AMI adoption, recurring SaaS, and growth of beyond the meter opportunities. Management also highlighted its expected growth rates of DD% SaaS growth, DD% growth beyond the meter, MSD% growth in customer water usage (meter conversion, AMI, and share gains), and LSD% growth in the de-prioritized Flow Instrumentation segment. We expect most of today’s discussion to be around both Badger’s portfolio today and where management intends on growing in the medium term, including growth in water quality and flow sensors. Badger Meter’s capital allocation framework continues to balance growth, return of capital to shareholders, and acquisitions that align to its strategy and is supported by its strong FCF generation. While we liked all of the strategic updates, investors remain focused on the 2H26 rebound in sales growth as Badger side-steps an air pocket in larger AMI deployments. However, given the sizable backlog, we remain confident the company will eventually see this ramp up, with the key risk being timing. Given the wave of positive nuggets in the slide deck, we would expect shares to outperform peers by LSD% today."

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Shares of Badger Meter closed at $118.06 yesterday.