Research
Research Alert: CFRA Maintains A Buy Rating On Shares Of Itron, Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We are raising our 12-month target price to $131 (from $123), based on a P/E 20x our 2027 EPS, below ITRI's three- and five-year historical averages of 25x-31x but reflecting improved business quality and structural margin expansion. We are lowering our 2026 and 2027 EPS estimates to $6.01 and $6.58, respectively (from $6.15 and $6.83), due to ITRI's lower-than-expected Q2 guidance and near-term revenue headwinds from project timing volatility, and ongoing acquisition-related dilution. However, we maintain our positive view on the transformation, citing record gross margins, 28% ARR growth, early Resiliency Solutions traction, and 22% Outcomes growth as evidence of execution. We acknowledge the declining backlog and second-half execution risk, and view Q3 guidance as a pivotal moment for investor sentiment. However, with 1H results ahead of internal expectations, we believe the long-term tailwinds from the business mix shift and fundamental improvement in revenue quality outweigh near-term choppiness.
$ITRI
