Reasons Institutions Continue to Invest in Badger Meter Following Significant Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy BMI?
Source: Marketbeat
Market Correction and Valuation: Badger Meter's stock has experienced a significant 40% reduction in price, leading to a market correction that has realigned valuations, indicating a potential rebound in the future.
Strong Financial Forecasts: The company has reaffirmed its long-term forecasts, expecting sustainable revenue growth and robust cash flow conversion, with projections of a 50% stock price rebound in upcoming quarters.
Institutional Buying Activity: Institutions are accumulating Badger Meter stock, providing a solid support base and enhancing the outlook for price advances, despite mixed quarterly results.
Positive Operational Performance: Despite falling short of consensus estimates, Badger Meter reported a 7.6% revenue growth, improved operating margins, and a strong balance sheet, indicating resilience and potential for future growth.
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Analyst Views on BMI
Wall Street analysts forecast BMI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BMI is 214.86 USD with a low forecast of 157.00 USD and a high forecast of 243.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 145.880
Low
157.00
Averages
214.86
High
243.00
Current: 145.880
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.
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- Product Line Adjustments: Tesla will discontinue its S and X models, which account for only 5% of total sales, aiming to reallocate resources towards the more promising production of Optimus robots, demonstrating a commitment to strategic transformation.
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Market Correction and Valuation: Badger Meter's stock has experienced a significant 40% reduction in price, leading to a market correction that has realigned valuations, indicating a potential rebound in the future.
Strong Financial Forecasts: The company has reaffirmed its long-term forecasts, expecting sustainable revenue growth and robust cash flow conversion, with projections of a 50% stock price rebound in upcoming quarters.
Institutional Buying Activity: Institutions are accumulating Badger Meter stock, providing a solid support base and enhancing the outlook for price advances, despite mixed quarterly results.
Positive Operational Performance: Despite falling short of consensus estimates, Badger Meter reported a 7.6% revenue growth, improved operating margins, and a strong balance sheet, indicating resilience and potential for future growth.
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- Earnings Performance: Tesla reported earnings per share of $0.50 for Q4, exceeding estimates but down 63% year-over-year, marking the lowest fourth-quarter results since 2020, indicating significant pressure on its automotive business amid intensifying market competition and declining demand.
- Capital Expenditure Plan: Tesla announced it will increase its capital spending to $20 billion for 2026, more than doubling its previous all-time high, aiming to invest heavily in autonomous driving and robotics, although this may exacerbate cash flow pressures requiring substantial returns within the next two years.
- Product Line Adjustment: Tesla will discontinue production of the Model S and X to repurpose its Fremont plant for Optimus robot production, a strategic shift intended to focus resources on future automation and AI projects, despite these models accounting for only 5% of total sales.
- Market Reaction: Tesla's stock has garnered market attention due to its ambitious plans, yet analysts express skepticism about the company's ability to mass-produce robots and robotaxis within two years, reflecting cautious investor sentiment regarding its future growth potential.
See More
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- Earnings Performance: Tesla reported earnings per share of $0.50 for the fourth quarter, exceeding estimates but down 63% year-over-year, marking the lowest results since 2020, indicating pressure on its automotive business.
- Capital Spending Plans: Tesla announced plans to increase its capital expenditures to $20 billion for 2026, more than doubling previous levels, reflecting the company's ambitions in autonomy and robotics, while raising concerns about its financial health.
- Product Line Adjustments: Tesla will discontinue its S and X models, which account for only 5% of total sales, aiming to reallocate resources towards the more promising production of Optimus robots, demonstrating a commitment to strategic transformation.
- Intensifying Market Competition: Tesla's automotive revenue declined by 11% in the fourth quarter, facing increasing pressure from competitors like GM in the electric vehicle market, suggesting a need for accelerated transformation to maintain market share.
See More
Reasons Institutions Continue to Invest in Badger Meter Following Significant Decline
Market Correction and Valuation: Badger Meter's stock has experienced a significant 40% reduction in price, leading to a market correction that has realigned valuations, indicating a potential rebound in the future.
Strong Financial Forecasts: The company has reaffirmed its long-term forecasts, expecting sustainable revenue growth and robust cash flow conversion, with projections of a 50% stock price rebound in upcoming quarters.
Institutional Buying Activity: Institutions are accumulating Badger Meter stock, providing a solid support base and enhancing the outlook for price advances, despite mixed quarterly results.
Positive Operational Performance: Despite falling short of consensus estimates, Badger Meter reported a 7.6% revenue growth, improved operating margins, and a strong balance sheet, indicating resilience and potential for future growth.
See More
Badger Meter Reports Strong Q4 2025 Earnings with Record Sales and Growth Outlook
- Strong Financial Performance: Badger Meter reported total sales of $221 million in Q4 2025, reflecting an 8% year-over-year increase, which underscores robust market demand and profitability, further solidifying the company's leadership in smart water management.
- Margin Expansion: The company's gross margin improved from 40.3% in the prior year to 42.1%, while operating profit margins increased by 40 basis points to 19.5%, indicating successful strategies in cost control and product pricing.
- PRASA Project Scale: The PRASA AMI project is described as one of the largest deployments globally, involving 1.6 million service connections, which is expected to provide long-term growth opportunities for the company, although management did not specify the revenue impact for 2026.
- Future Growth Outlook: Management reiterated a high single-digit sales growth outlook over the next five years, emphasizing a continued focus on the demand for smart water management solutions and the ongoing advancement of awarded projects to ensure stable cash flow and profitability.
See More
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- Volume Surge: The Global X Clean Water ETF experienced unusually high trading volume on Wednesday, with over 378,000 shares traded compared to a three-month average of about 45,000 shares, indicating a significant increase in market interest.
- Top Component Performance: Xylem led the ETF in trading volume with over 2 million shares changing hands, despite a decline of about 3.2% in its stock price, suggesting a potential decrease in investor confidence.
- Primo Brands Activity: Primo Brands also saw trading volume exceeding 1.3 million shares, with a stock price drop of about 1.3%, reflecting cautious market sentiment regarding its future performance, which may affect its short-term investment appeal.
- Energy Recovery vs. Badger Meter: Energy Recovery performed the best on Wednesday with a stock price increase of about 1.9%, while Badger Meter lagged significantly, down approximately 15.3%, highlighting a stark divergence among ETF components that could influence investor asset allocation strategies.
See More
Badger Meter Shares Drop 10% After Q4 Earnings Miss Expectations
- Weak Earnings Performance: Badger Meter reported Q4 sales of $221 million, falling short of the $232 million expected by analysts, leading to a 10% drop in stock price, indicating pressure on sales growth.
- Annual Performance Review: While the company achieved 11%, 13%, and 19% growth in revenue, EPS, and free cash flow for the full year 2023, the mere 8% sales growth in Q4 highlights challenges in market competition.
- Strategic Transition Progress: Badger Meter's Smart Cover saw a 25% sales increase in 2025, and its Software-as-a-Service sales grew by 27%, indicating positive strides in the shift towards tech-driven solutions.
- Cautious Future Outlook: CEO Kenneth Bockhorst mentioned that base revenue growth dynamics are expected to emerge in the second half of 2025, suggesting that while short-term challenges exist, the company remains optimistic about long-term growth potential.
See More
