Badger Meter Shares Drop Following Analyst Downgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Should l Buy BMI?
Source: Fool
Badger Meter shares fell 8.46% today, crossing below the 5-day SMA, reflecting investor concerns following an analyst downgrade.
The decline is attributed to Barclays analyst William Grippin downgrading Badger Meter to an underweight rating with a price target of $157, indicating over a 13% downside from the previous close. Grippin highlighted challenges in the utility market that could hinder the company's growth prospects, despite its solid financial health and consistent cash flow generation.
This downgrade raises red flags for investors, as the stock's current P/E ratio of 38.8, while lower than its five-year average, still suggests it may be overvalued. Investors are likely to reassess their positions in light of these concerns.
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Analyst Views on BMI
Wall Street analysts forecast BMI stock price to rise
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 115.540
Low
157.00
Averages
214.86
High
243.00
Current: 115.540
Low
157.00
Averages
214.86
High
243.00
About BMI
Badger Meter, Inc. is a manufacturer and marketer of products incorporating flow measurement, quality, control and other system solutions serving markets worldwide. Its offerings, marketed as BlueEdge, include a suite of tailorable solutions that connect water management technology, software and support services to deliver insights enabling the proactive management of water across the water cycle. Its solutions include measurement and control hardware, connectivity and communication, data visualization and software-delivered actionable insights, and ongoing support to optimize customers' operations. Its measurement and control hardware, instruments and sensors include product families, such as meters that measure the flow of water and other fluids, water quality monitoring solutions and high frequency pressure and acoustic leak detection hardware that provides real-time monitoring data. It offers a range of communication solutions including the ORION branded family of radio endpoints.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Badger Meter Reports Weaker Q1 Results, Analysts Lower Price Targets
- Sales Decline: Badger Meter reported a 9% drop in sales for Q1, indicating weak market demand that could adversely affect the company's future revenue growth and market share.
- Earnings Per Share Drop: The diluted EPS also fell, reflecting a decrease in the company's profitability, which may lead to a decline in investor confidence.
- Analysts Lower Price Targets: Following the disappointing results, analysts have lowered their price targets on Badger Meter stock, which could further pressure the stock price and influence investor decisions.
- Uncertain Market Outlook: The overall decline in performance and negative analyst expectations may pose greater market challenges for Badger Meter in the coming quarters, impacting its strategic planning and investment attractiveness.
See More
BADGER METER INC: JP MORGAN LOWERS TARGET PRICE FROM $190 TO $160
- JPMorgan's Target Price Adjustment: JPMorgan has reduced its target price for a specific stock from $190 to $160.
- Market Implications: This adjustment may reflect changing market conditions or company performance expectations.
See More
Badger Meter Misses Q1 Revenue Expectations
- Revenue Decline: Badger Meter reported Q1 revenue of $202.3 million, a 9% year-over-year decline that fell short of analyst expectations of $231.1 million, indicating short-term challenges in market demand.
- Profitability Pressure: The adjusted EPS of $0.93 was 24% below the expected $1.22, highlighting pressures on the company regarding cost control and competitive positioning in the market.
- Project Delivery Delays: Management noted that the completion of several large advanced metering infrastructure projects led to a temporary revenue gap, with new projects expected to begin deployment in the second half of 2026, potentially driving future revenue growth.
- Acquisition Impact: The acquisition of UK-based UDLive is set to enhance Badger Meter's capabilities in sewer line monitoring, expected to positively impact earnings in the first year and provide long-term growth potential as regulations and customer demand drive adoption.
See More
Badger Meter Q1 Earnings Analysis
- Revenue Decline: Badger Meter reported Q1 revenue of $202 million, down 9% year-over-year, primarily due to project pacing and weaker short-cycle order rates, with full-year 2026 organic revenue expected to remain flat compared to 2025, indicating a soft market demand.
- Gross Margin Performance: Despite the revenue drop, the company maintained a gross margin of 41.7%, down only 120 basis points, reflecting the durability of pricing discipline and structural mix benefits, with expectations for the year to range between 39% and 42%.
- Acquisition Impact: The acquisition of UD Live is expected to be accretive to EPS in the first year, enhancing Badger Meter's position in the global sewer line monitoring market, aligning with the company's strategic goals of modernization and efficiency improvements.
- Cost Control Measures: The company has implemented cost reduction actions, including a 10% salary cut for executives, to maintain spending discipline and protect margin integrity, demonstrating financial resilience amid market challenges.
See More
Badger Meter Q1 2026 Earnings Call Insights
- Sales Decline: Badger Meter reported Q1 sales of $202 million, reflecting a 9% year-over-year decline, attributed to weaker-than-expected short-cycle order rates that resulted in a revenue shortfall of approximately $15 million to $20 million, indicating early signs of market demand weakness.
- Gross Margin and Operating Earnings: The gross margin for Q1 stood at 41.7%, with operating earnings around $35.2 million and an operating margin of 17.4%, demonstrating the company's ability to maintain profitability despite overall performance decline, highlighting efforts in cost management.
- Cost Control Measures: The company has implemented cost reduction actions, including a 10% salary cut for executive officers, aimed at maintaining spending discipline and protecting margin integrity, reflecting management's cautious stance amid future market uncertainties.
- Future Outlook: Management anticipates a revenue rebound in the second half of 2026, emphasizing that despite the poor performance in Q1, they remain optimistic about project progress in the latter half of the year, asserting that the short-term performance fluctuations are timing-related rather than structural changes.
See More
Badger Meter Shares Plunge 19% After Disappointing Q1 Results
- Performance Decline: Badger Meter's Q1 sales and earnings per share fell by 9% and 29%, respectively, both missing Wall Street expectations, leading to a 19% drop in stock price on Friday, indicating short-term challenges for the company.
- Project Impact: The completion of four major projects in Jacksonville, Orlando, Pinellas County, and Galveston, which added over 800,000 new water connections, directly contributed to the sudden sales dip, highlighting the impact of project timing variability on performance.
- Management Outlook: Despite the disappointing Q1 results, management anticipates that sales will gradually rebound throughout the year, expected to reach levels comparable to 2025, reflecting confidence in future demand stability and operational resilience.
- Long-Term Growth Potential: Badger Meter benefits from the need to replace aging metering infrastructure, modernization of utility water and sewer operations, and stricter regulations, which are expected to provide decades-long growth tailwinds, particularly in the context of increasing water scarcity and safety monitoring needs.
See More
Badger Meter Reports Weaker Q1 Results, Analysts Lower Price Targets
- Sales Decline: Badger Meter reported a 9% drop in sales for Q1, indicating weak market demand that could adversely affect the company's future revenue growth and market share.
- Earnings Per Share Drop: The diluted EPS also fell, reflecting a decrease in the company's profitability, which may lead to a decline in investor confidence.
- Analysts Lower Price Targets: Following the disappointing results, analysts have lowered their price targets on Badger Meter stock, which could further pressure the stock price and influence investor decisions.
- Uncertain Market Outlook: The overall decline in performance and negative analyst expectations may pose greater market challenges for Badger Meter in the coming quarters, impacting its strategic planning and investment attractiveness.
See More
BADGER METER INC: JP MORGAN LOWERS TARGET PRICE FROM $190 TO $160
- JPMorgan's Target Price Adjustment: JPMorgan has reduced its target price for a specific stock from $190 to $160.
- Market Implications: This adjustment may reflect changing market conditions or company performance expectations.
See More
Badger Meter Misses Q1 Revenue Expectations
- Revenue Decline: Badger Meter reported Q1 revenue of $202.3 million, a 9% year-over-year decline that fell short of analyst expectations of $231.1 million, indicating short-term challenges in market demand.
- Profitability Pressure: The adjusted EPS of $0.93 was 24% below the expected $1.22, highlighting pressures on the company regarding cost control and competitive positioning in the market.
- Project Delivery Delays: Management noted that the completion of several large advanced metering infrastructure projects led to a temporary revenue gap, with new projects expected to begin deployment in the second half of 2026, potentially driving future revenue growth.
- Acquisition Impact: The acquisition of UK-based UDLive is set to enhance Badger Meter's capabilities in sewer line monitoring, expected to positively impact earnings in the first year and provide long-term growth potential as regulations and customer demand drive adoption.
See More
Badger Meter Q1 Earnings Analysis
- Revenue Decline: Badger Meter reported Q1 revenue of $202 million, down 9% year-over-year, primarily due to project pacing and weaker short-cycle order rates, with full-year 2026 organic revenue expected to remain flat compared to 2025, indicating a soft market demand.
- Gross Margin Performance: Despite the revenue drop, the company maintained a gross margin of 41.7%, down only 120 basis points, reflecting the durability of pricing discipline and structural mix benefits, with expectations for the year to range between 39% and 42%.
- Acquisition Impact: The acquisition of UD Live is expected to be accretive to EPS in the first year, enhancing Badger Meter's position in the global sewer line monitoring market, aligning with the company's strategic goals of modernization and efficiency improvements.
- Cost Control Measures: The company has implemented cost reduction actions, including a 10% salary cut for executives, to maintain spending discipline and protect margin integrity, demonstrating financial resilience amid market challenges.
See More
Badger Meter Q1 2026 Earnings Call Insights
- Sales Decline: Badger Meter reported Q1 sales of $202 million, reflecting a 9% year-over-year decline, attributed to weaker-than-expected short-cycle order rates that resulted in a revenue shortfall of approximately $15 million to $20 million, indicating early signs of market demand weakness.
- Gross Margin and Operating Earnings: The gross margin for Q1 stood at 41.7%, with operating earnings around $35.2 million and an operating margin of 17.4%, demonstrating the company's ability to maintain profitability despite overall performance decline, highlighting efforts in cost management.
- Cost Control Measures: The company has implemented cost reduction actions, including a 10% salary cut for executive officers, aimed at maintaining spending discipline and protecting margin integrity, reflecting management's cautious stance amid future market uncertainties.
- Future Outlook: Management anticipates a revenue rebound in the second half of 2026, emphasizing that despite the poor performance in Q1, they remain optimistic about project progress in the latter half of the year, asserting that the short-term performance fluctuations are timing-related rather than structural changes.
See More
Badger Meter Shares Plunge 19% After Disappointing Q1 Results
- Performance Decline: Badger Meter's Q1 sales and earnings per share fell by 9% and 29%, respectively, both missing Wall Street expectations, leading to a 19% drop in stock price on Friday, indicating short-term challenges for the company.
- Project Impact: The completion of four major projects in Jacksonville, Orlando, Pinellas County, and Galveston, which added over 800,000 new water connections, directly contributed to the sudden sales dip, highlighting the impact of project timing variability on performance.
- Management Outlook: Despite the disappointing Q1 results, management anticipates that sales will gradually rebound throughout the year, expected to reach levels comparable to 2025, reflecting confidence in future demand stability and operational resilience.
- Long-Term Growth Potential: Badger Meter benefits from the need to replace aging metering infrastructure, modernization of utility water and sewer operations, and stricter regulations, which are expected to provide decades-long growth tailwinds, particularly in the context of increasing water scarcity and safety monitoring needs.
See More
