ITRI

Itron's New Deal: Itron has secured a multi-year contract with Tucson Water to implement its AMI Essentials smart metering platform, aimed at enhancing water conservation and operational visibility in the city.

Stock Performance: Despite a recent decline in Itron's share price, which has seen a 20.22% drop over the past 90 days, the company boasts a strong three-year total shareholder return of 94.07%, indicating potential long-term growth.

Market Valuation: Analysts suggest that Itron's shares are undervalued, with a fair value estimate of $140.20 compared to its last close at $96.24, raising questions about whether the market has already accounted for future growth.

Risks and Opportunities: While ongoing digitalization and IoT adoption are expected to drive revenue growth for Itron, potential regulatory delays and slower-than-anticipated SaaS growth could pose risks to its earnings momentum.

Aristotle Capital Boston's Stake Reduction: The fund sold 123,119 shares of Itron in Q3, reducing its position value by approximately $18.35 million, leaving it with 303,560 shares valued at $37.8 million as of September 30.

Itron's Financial Performance: Despite a 5% year-over-year revenue decline to $582 million, Itron reported improved margins, with gross margin increasing by 360 basis points and free cash flow nearly doubling to $113 million.

Market Position and Future Outlook: Itron, a provider of technology solutions for utilities and smart cities, has a $4.3 billion backlog and is well-positioned for long-term utility spending, indicating potential for future growth despite recent stock price declines.

Investor Sentiment: The reduction in Itron shares by Aristotle Capital may reflect a strategy to lock in gains rather than a loss of confidence in the company's fundamentals, as the stock has experienced volatility following a strong performance.