Piper Jaffray Neutral On Itron Despite Cisco Partnersnhip (ITRI, CSCO)
Piper Jaffray is Neutral on shares of Itron Inc. (NASDAQ: ITRI), after the company reached an agreement with Cisco (NASDAQ: CSCO) on an IP agreement. It has a $65 price target.
In a research report, Piper Jaffray says, "While a new IP-based communications platform for Itron's AMI offering was expected in 2H10, we view the partnership announced today with Cisco as a positive development to this end. Products with Cisco technology are expected to enable interoperable communications between wired and wireless smart grid components. We caution that the risk aversion of utilities may limit the near-term fundamental impact, and are maintaining our Neutral rating due to the prospect of decelerating growth in 2011."
Shares of Itron gained $3.65, good for a gain of 6.76%, to close at $57.65.
